IDFC Alternatives Ltd’s second infrastructure fund has entered into a definite agreement with First Solar Power India Pvt. Ltd, and other affiliates of the US-based First Solar Group, to acquire the 190 MW of solar power assets across seven projects in India.
In a press statement, the company said that IDFC Alternatives is acquiring the assets through its renewable energy platform Vector Green Energy Pvt. Ltd. The deal value was, however, not disclosed.
IDFC’s India Infrastructure Fund II is well on its way to achieving an installed base of 400-450 MW of operating renewable assets by the end of the current financial year, said Aditya Aggarwal, partner-infrastructure, at IDFC Alternatives.
The seven solar power projects are located across Andhra Pradesh and Telangana. The projects have long-term power purchase agreements with state utilities.
First Solar is a fully-owned subsidiary of Arizona-based First Solar Inc, a leading global provider of comprehensive photovoltaic solar systems, which use its advanced module and system technology.
India Infrastructure Fund II has established Vector Green Energy as the operating-cum-holding company for its investments in the renewable energy space.
VCCircle had reported in September 2016 that IDFC Alternatives is floating a platform to host its renewable energy investments.
IDFC Alternatives has about Rs 17,700 crore worth of assets under management, with multiple funds across three asset classes – infrastructure, private equity and real estate, according to the company’s latest annual report.
The renewable energy space in India has witnessed a lot of activity since the government set the ambitious renewable energy capacity-addition targets of 175 gigawatt by 2022.
Earlier this month, Warburg Pincus had invested $100 million (Rs 645 crore) in Mumbai-based rooftop solar projects developer CleanMax Enviro Energy Solutions Pvt. Ltd.
International Finance Corporation, the World Bank’s private-sector investment arm, has emerged as a large investor in the sector. Last year, it had invested $125 million in Hero Future Energies. IFC had also invested in Azure Power and provided debt funding to Actis-backed Ostro Energy.
Some of the world’s biggest pension funds, including Canada Pension Plan Investment Board and Caisse de dépôt et placement du Québec, are also scouting for deals in India’s solar power sector.