IDFC acquires India solar portfolio
IDFC Alternatives has acquired a portfolio of solar power assets in India from US-based renewable energy developer First Solar Group.
The acquisition comprises seven solar power projects in Andhra Pradesh and Telangana with a total projected capacity of 190 megawatts. Financial details of the transaction have not been disclosed. The projects will be managed through Vector Green Energy, IDFC's renewable energy platform.
First Solar, based in Colorado, makes solar panels, builds utility-scale solar power plants, and provides additional services such as finance, maintenance, and recycling for used panels. It has developed more than 17 gigawatts of projects in 10 countries, including India, Thailand, Japan and Australia. The Indian projects being sold already have power purchase agreements with local utilities. Additional projects still under development will remain in First Solar India's portfolio.
IDFC Alternatives is the alternative asset investment arm of India's IDFC Group. It invests in Indian infrastructure assets, including renewable energy, from its second dedicated infrastructure fund, which closed in 2014 at $900 million. Holdings include a controlling stake in the Bangalore Elevated Tollway, which was bought from NCC Infrastructure Holdings and Some Enterprise last year at an enterprise value of INR7.5 billion.
IDFC sees platform-building as its main focus. Previous platforms created by the firm include Green Infra, a clean energy producer incubated by IDFC in 2008. It has become one of India's largest renewable energy groups with 665 megawatts of wind capacity in operation and under development, and a further 35 MW of solar assets. IDFC sold a 60% stake in Green Infra to Singapore-based Sembcorp Utilities in 2015 for INR10.6 billion ($167 million).
In addition to the infrastructure fund, IDFC is raising its fourth PE fund, which has a target of $300 million and reached a first close of $100 million earlier this year.
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