A subsidiary of IDFC Alternatives – a multi-fund asset manager from India – has today signed a purchase agreement to acquire 190 MW of installed solar assets from U.S. solar developer and thin film specialist First Solar.
Vector Green Energy Private Limited, which belongs to IDFC Alternatives’ India Infrastructure Fund II, will take ownership of seven solar farms across the Indian states of Andhra Pradesh and Telangana, in a deal thought to be worth $300 million.
In a press release issued by IDFC Alternatives, the asset manager stressed that the deal to acquire the solar parks – all built using First Solar’s CdTe modules – remains subject to the customary approvals and conditions, but the firm is confident that the deal will be finalized.
“Consistent with its stated strategy of aggregating operating renewable assets, India Infrastructure Fund II is well on its way to achieving an installed base of 400 – 450 MW of operating renewable assets by the end of the current financial year,” said IDFC Alternatives partner Aditya Aggarwal.
First Solar’s India head Sujoy Ghosh added: “This is an important milestone for our company’s development activities in India. We are able to demonstrate the ability to recycle capital by creating a portfolio of de-risked assets that demonstrate predictable and reliable cash flows.”
First Solar’s India portfolio prior to this deal stood at just over 1 GW of supplied capacity, out of around 17 GW worldwide.
India’s surging solar market represents more opportunities for further project development and sales for First Solar, while IDFC Alternatives is also intent on building out its renewable energy capacity in the country.
“We are evaluating various deals across wind, solar and mini hydro,” said Aggarwal. “We continue to have access to significant amount of capital to invest, but are interested in deals where there is a clear intent to consummate a trade.”
Vector Green Energy, a platform company of IDFC’s that is most directly involved in the First Solar deal, has already acquired 40 MW of solar PV capacity in India, as well as 24 MW of wind projects.
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