KKR to acquire India solar assets for $204m
KKR has announced plans to acquire five solar energy assets from Shapoorji Pallonji Infrastructure Capital (SP Infra) for INR15.5 billion ($204 million).
The assets comprise projects in Maharashtra and Tamil Nadu with a capacity of 317 megawatt peak (MWp).
It is set to become KKR's second energy infrastructure-related transaction in India following an investment in power grid operator IndiGrid last year. IndiGrid recently acquired two transmission assets and announced plans to buy complementary solar projects.
SP Infra, the infrastructure development arm of Shapoorji Pallonji Group, has interests in renewable and gas-based power. It is also involved in the construction of highways, ports, and terminals in India and other countries. The company continues to manage solar energy projects in Telangana, Rajasthan and Karnataka alongside other locations around the world.
“SP Infra and the Shapoorji Pallonji Group are recognized in India and worldwide for the high quality of their renewable energy projects, and given the government’s ambitious target of achieving 175 gigawatts of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India,” said Sanjay Nayar, CEO of KKR India, in a statement.
According to India’s Central Electricity Authority (CEA), renewable energy sources accounted for 86.3 GW of total installed capacity at the end of January. Solar contributed just under two-fifths of that amount. Across renewable and non-renewable energy sources, India had a total installed capacity of 368.6 GW at the end of the same period. However, energy use in the country has dipped in recent weeks due to a coronavirus pandemic-related shutdown.
In India, KKR’s infrastructure portfolio also includes a 2017 investment in Bharti Infratel, the cell tower arm of Indian telecom services provider Bharti Airtel. The US private equity firm is looking to merge the telecom infrastructure asset with Indus Towers, the telecom infrastructure arm of Vodafone India. KKR-backed Bharti Infratel has obtained regulatory approval for the merger.
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