Lightsource enters Indian solar partnership with UK Climate Investments

Lightsource has now also reached financial close on a 60MW project in the state of Maharashtra. Credit: Lightsource

UK-based developer Lightsource Renewable Energy and UK Climate Investments (UKCI), part of the Green Investment Group within Macquarie Infrastructure and Real Assets, have entered into a partnership for the development, acquisition and ownership of utility-scale solar assets in India.

Lightsource's joint venture with UKCI, aims to develop at least 300MW of new Indian PV projects, while also acquiring operational assets. Lightsource will also perform O&M and long-term asset management services under the agreement.

The firm has now also reached financial close on a 60MW project in the state of Maharashtra, with UK Climate Investments to provide 49% of the equity for the construction of this first project.

The project was awarded by Solar Energy Corporation India (SECI) through a competitive auction process in 2016 out of a total 450MW on offer. The project will include more than 200,000 modules installed across 97 hectares.

SECI set the benchmark tariff at INR4.43/kWh (US$0.068) and Lightsource bid for INR1.96 million (US$30,000) per megawatt of viability gap funding (VGF) support.

At a wider level, UK Climate Investments has also earmarked up to £30 million both for this project and for further project developments with Lightsource. The equity investment in the first project also uses official development assistance from the International Climate Fund.

UKCI, a joint venture between the UK Government’s Department for Business, Energy and Industrial Strategy and UK Green Investment Climate International, is a £200 million pilot investment programme mandated to invest in India and across sub-Saharan Africa.

Nick Boyle, chief executive of Lightsource said: “The UK Climate Investments partnership, and our first Indian project reaching financial close, are significant milestones in the growth of Lightsource. This project is a testament to the strength of the team we have in India, supported by a global project finance and operational capability, that have made this project a success. UK Climate Investments are a fantastic partner for us to seed the foundations of a large solar and smart energy investment and operating platform in India.”

Martin Stanley, global head, Macquarie Infrastructure and Real Assets, added: “This first investment for UK Climate Investments will provide the necessary sponsor support for the first project in a very promising series of potential solar investments in India, in line with UKCI’s investment mandate.”

Lightsource previously announced that it has formed a partnership with BlackRock to acquire up to 1GW of solar via a new entity named Kingfisher.

Article revised: Kingfisher is a partnership between Lightsource and BlackRock.

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)