India's green energy space deal activity has returned due to the pandemic and has also allowed solar rooftop space
New Delhi (Natural Energy News): In what may rank among the largest solar rooftop deals in India, Eversource Capital plans to buy the entire 167 MW solar rooftop portfolio of NYSE-listed Azure Power Global for about $ 112 million, with two people developing. told about.
The sale process of one of India's largest solar rooftop portfolios for International Finance Corporation (IFC) and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) is being run by KPMG.
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The activity generated by the coronavirus epidemic in India's green energy space has now gained traction and has also allowed solar rooftop space.
It is given the importance that the developers are looking for development capital in the backdrop of India which is home to the world's largest clean energy program. The largest foreign clean energy investment of $ 980 million in India is being announced by Orix Corp of Japan to buy a 17% stake in Greenco Energy Holdings.
"Eversource intends to purchase Azure Power Global's entire solar rooftop portfolio," the first said, requesting anonymity.
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The electricity generated from these projects is sold to state firms such as Solar Energy Corporation of India, NTPC, Railways, Delhi Metro Rail Corporation, Hindustan Aeronautics Limited; Commercial and industrial consumers such as DLF and Decathlon, and state-run power distribution companies.
"The deal remains to be concluded," said another person above whoever did not want to be named.
Eversource Capital, a similar joint venture between private equity firm Everstone Capital and global solar project developer Lightsros BP, has invested in Radiance Renewables, a distributed renewable energy platform. It develops, operates and has assets for residential, commercial and industrial clients and targets a 1.5 GW (GW) operating portfolio over four years.
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Azure Power has 7 GW portfolios and investors in the German Development Finance Institute Deutsche Investments- und Entwicklungsgesellschaft (DEG), the World Bank's private sector development arm IFC and CDPQ.
Unanswered reports emailed to an EverSat Capital spokesperson late Sunday remained unanswered.
Nathan Judge, head of investor relations, Azure Power, in an email response, declined to comment.
In an email response, a KPMG spokesman said, "As a policy, we cannot comment on specific information of any company."
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Experts say investor interest in India's green energy sector is likely to continue.
"For one, power demand has been extra or small the same as last year after shocking Covid's demand, and India's electricity need has developed at a CAGR (compound annual growth rate) of around 5-6% since long. Secondly, we are seeing a firm commitment to green energy in India and installed solar capacity of less than 40GW, with peak demand around 175GW (and rising) for solar capacity. There is enough main room for adequate expansion, ”Rajesh Iwaturi, Partner, Power and Utilities at EY India.
India aims to have 175 GW of clean energy capacity by 2022, including 100GW from solar projects. Of this, 40 GW are coming from solar rooftop projects.
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However, the rooftop solar sector has been closed as expected due to several reasons, including the lack of an innovative business model and sub-optimal push from DISCOM. The commercial and industrial sectors, with this in mind, are attractive segments for innovation in rooftop solar solutions with their high power tariffs, and we may well see some action around these segments in the short term, ”he said.
This is expected to change with Prime Minister Narendra Modi recently calling on each state to have at least one 'city of the solar city', whose electricity needs will be fully met through rooftop solar power.
EverSource Capital is a target $ 700 million green infrastructure fund and intends to invest more than $ 1 billion in renewable energy investments through its Green Growth Equity Fund (GGEF). It has anchor investors from India's National Investment and Infrastructure Fund (NIIF) and the UK Government's Department for International Development. In July, BP plc announced a $ 70 million investment in GGEF.
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