Announced today, UKCI will acquire a 40 per cent ownership interest in a 185 MW portfolio of operating solar assets in India. Fortum will retain a 46 per cent interest in the solar farms, with EAB entering an agreement to acquire the remaining 14 per cent.
The transaction represents a significant development in one of the world’s fastest growing solar markets, with the portfolio used to create India’s first unlisted renewables ‘yieldco’ vehicle for international investors.
This market-first initiative will establish a new asset class that seeks to generate regular, predictable cash yield for investors. In doing so, the project will support the further development of India’s secondary market in renewable assets and the recycling of development capital to underpin accelerated deployment of new renewable energy infrastructure.
UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy, which aims to help the world’s developing economies adapt to climate change and promote cleaner, greener growth.
The acquired portfolio comprises four solar farms located in Rajasthan, Madhya Pradesh, and Karnataka. The plants generate enough clean electricity to power ~315,000 homes, avoiding ~330ktpa of CO2 emissions annually.
As part of the agreement, Fortum will continue to provide operation and maintenance services for the assets.
It is expected that the transaction will reach financial close in the third quarter of 2018.