In a deal that is up to interpretation vis a vis the state of the solar market in India, Fotowatio Renewable Ventures (FRV), the Madrid based large-scale solar plant developer is in talks to sell its India venture in a deal that could be worth up to 600 crores.
Solar Energy Corporation of India (SECI) awarded a 100MW Power Purchase Agreement (PPA) to FRV under the National Solar Mission programme in 2016. The project, which is FRV’s first in India, is in Ananthapuramu Solar Park in Andhra Pradesh. With a fixed tariff of Rs 4.43 along with viability ap funding, the project could be an attractive target for firms considering the changed circumstances now. Enabling FRV to exit with possibly strong returns. The deal will also continue a trend here aggressive developers have been acquiring solar assets which were awarded in the pre-2017 period at much better rates an viability gap funding to shore up their overall portfolio.
FRV is currently in talks with various investors such as Macquarie Infrastructure and Real Assets (MIRA), green infra JV between PE fund Everstone Group & UK-based Lightsource BP’s Eversource Capital and Edelweiss Infrastructure Yield Plus Fund as per a quote given to leading newspaper.
FRV, which was acquired by the Saudi Arabia-headquartered Abdul Latif Jameel Group in April 2015, has sold several of its businesses worldwide. Its US business had been sold off earlier to SunEdison. In June last year, FRV sold its 100 MW solar plant in Australia to a consortium of Lighthouse Infrastructure and DIF, while a 65 MW solar plant in Uruguay was sold in March.
This is not the first incident of a foreign company selling its investment in India, like FRV, several foreign entities are in the process of exiting their solar businesses in India.
Last week, Finnish clean energy firm Fortum sold 54% in solar business in India to Macquarie-owned UK Climate Investments, along with asset management firm Elite Alfred Berg, for about $176 million. American firm First Solar, Inc. sold its 190 MW India solar power project to Vector Green Energy, the renewable energy platform of IDFC Alternatives for $300 million last year.
copyright:iamrenew.com
The Indian Institute of Technology (Indian School of Mines), Dhanbad, has signed an MoU with…
Kotyark Industries Limited has announced that it has been awarded a tender to supply 48,381…
In a key development, Hydrogen Europe and the Green Hydrogen Association (GH2 India) have signed…
Energy transition players Abraxas Power Corp and EDF Group have collaborated to jointly develop the…
The state owned NTPC has launched an eco-friendly and affordable housing solution called ‘Sukh’ Eco-house,…
Tecnimont has announced that its Indian subsidiary, Tecnimont Private Limited (TCMPL), has partnered with Paradeep…