Private equity (PE) fund Actis Llp is likely to purchase the Indian solar power business of French energy firm Engie SA, which is said to be the biggest deal in the local renewable energy space, according to a person who is aware of the development.
Engie Solar, which claims to have an 810 megawatt (MW) solar portfolio in India, has employed Rothschild and Co. to seek a buyer for the assets.
Shapoorji Pallonji Group
Actis’s is said to be a move taken after the acquisition of the Shapoorji Pallonji group’s 194MW solar asset portfolio for $200 million. With the help of its renewable energy platform Spring Energy. Actis’s interest triggered in renewable energy in India when it sold its first green energy business. Ostro Energy, to ReNew Power Ventures at a value of approximately $1.5 billion last year. The PE firm has told its strategy of growing green energy portfolios by bids and acquisitions for new projects.
Getting influenced by the purchase of the Shapoorji Pallonji group’s solar assets. Spring has started 1.65 gigawatts (GW) portfolio, out of which 1.45GW is under different levels of construction.
Actis plan ahead to cultivate Spring Energy to 2GW capacity.
“Actis is looking at acquisitions to expand its green energy portfolio in India and has been eyeing Engie’s assets. That has been looking for growth capital. Shapoorji Pallonji group’s solar assets were the first acquisition by Spring Energy,” the person cited above said, requesting anonymity.
Mint reported about Engie’s forthcoming plans to hand over a stake in its solar power portfolio.
Engie became the world’s largest electricity generator outside government rules, with an installed capacity of 115.3GW. Out of which 22% is from renewable energy sources. Furthermore, Engie plans to set 2GW capacity in India by the end of 2019. In addition to that, it has a wind power portfolio of 280MW.
Malcolm Wrigley, manager at Engie India in an emailed response, refuse to comment on “market speculations”. Questions emailed to an Actis spokesperson remained unanswered.
An external spokesperson for Rothschild said in an email: “I have been mandated to post to you that Rothschild & Co. does not comment on market speculations.”
It has been observed that there is a notable increase in interest in Engie’s solar assets. Mint reported that Edelweiss Infrastructure Yield Plus Fund was planning to pick up a stake in its Indian solar business with Engie.
Engie’s move was analyzed at a time when financing at the optimized cost has become the best approach to success. Apart from that, India has launched a protection duty for at least two years on modules imported from Malaysia and China. And solar cells that have further underlined the demand for competitive financing.
Also, India has an installed renewable energy capacity of 74.79GW. In which solar and wind power accounts for 25.21GW and 35.14GW, accordingly.