Indian energy giant Adani Green Energy Limited has inked a deal to purchase 205MW of contracted and operational solar assets from Essel Group for an enterprise price of INR1,300 crore (US$182 million).
The purchased assets are in the states of Punjab, Karnataka and Uttar Pradesh and have long-term power purchase agreements (PPAs) with state electricity distribution companies that average around 22 years.
The deal was made with Essel Green Energy Private Limited and Essel Infraprojects, entities of the debt-laden Essel Group. The Mumbai-based conglomorate is run by Indian billionnaire Subhash Chandra, and is best known for its television and media businesses.
Essel Infraprojects counts 685MW of solar assets of which 310MW are operational. The group is looking to offload the remainder of its portfolio in order to shrink its debt, according to reports in India’s Business Today and Live Mint.
In a statement on Thursday, Adani Green Energy CEO Jayant Parimal said his company, one of the largest renewable power generation companies in India, now owns 5.5GW of renewable power, of which 2.5GW has been commissioned.
In May, Adani Green Energy switched on a 50MWac solar PV project in Uttar Pradesh.