IDFC acquires 40MW Madhya Pradesh solar project eyeing ‘cash flow and diversification’

Facebook
Twitter
LinkedIn
Reddit
Email

A private equity fund represented by Indian firm IDFC Alternatives has bought a 40MW solar project in the Indian state of Madhya Pradesh from IL&FS, a company official has confirmed.

Aditya Aggarwal, partner, IDFC Alternatives, told PV tech that this is the first power purchase agreement (PPA) that IDFC has bought into with Solar Energy Corporation of India (SECI) as the off-taker.

The acquisition of the Malwa Solar Power Generation project was made by Vector Green Energy, a company formed out of IDFC Alternatives’ India Infrastructure Fund II. IL&FS was awarded the project by SECI in May 2015.

A relatively new player, Vector Green has been focusing on buying commissioned projects in the secondary market and has already contracted 375MW of capacity with an aim to reach at least 500MW by the end of 2018, by also focusing on rooftop and C&I users in addition to utilities.

Aggarwal added: “What you see in India is a lot of people chasing scale in terms of getting 2GW or 3GW. Our strategy is not to chase scale but rather cash flow. Being a fund, we are looking at buying operating assets and our focus is to return cash to the shareholders right from year one in form of dividends.”

The second part of the firm’s strategy is diversification across different states, off-takers and supply sources, hence the focus on rooftop PV, said Aggarwal

Last July, First Solar agreed to sell 190MW(AC) out of 200MW(AC) of its operational PV plants in India to the IDFC fund. In January this year, Vector Green completed refinancing of two of these PV projects in Telangana.

Read Next

September 28, 2022
Rajasthan’s electricity regulator has proposed new rules that would make solar installations in the state which supply power to other states provide 10% of their generation to Rajasthan’s state distribution company (Discom) free of charge.
September 28, 2022
The ENACT Installer App automates the complete journey of the customer, right from first contact to complete installation.
September 23, 2022
India’s government has approved the second round of the production-linked incentive (PLI) scheme to incentivise domestic solar PV module manufacturing.
September 22, 2022
Tech major Amazon has expanded its renewables portfolio globally with 71 new projects with a total capacity of 2.7GW.
September 20, 2022
Private equity firm KKR and Hero Group have invested US$450 million in Indian independent power producer (IPP) Hero Future Energies (HFE) to support its renewables expansion.
September 14, 2022
Tata Power Solar Systems has received a “letter of award” of INR5.96 billion (US$75 million) from NHDC to set up a 125MWp floating PV project in India.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)