Green Investment Group’s UK Climate Investments (UKCI) and Elite Alfred Berg have signed agreement with Fortum to acquire stake in its renewable energy portfolio in India.
As part of the agreement, Elite Alfred Berg will initially acquire a 14% stake and UKCI will acquire a 40% in Fortum’s 185MW portfolio of operational solar assets in India.
Elite Alfred Berg has an option to acquire an additional 16% stake by the end of the year. And, Fortum will retain a 46% interest in the solar farms.
Fortum, as part of the deal, will continue to provide operation and maintenance services for the solar assets.
Fortum solar & wind development and M&A senior vice president Kari Kautinen said: “The agreement with Elite Alfred Berg and UK Climate Investments is an important step in our solar strategy. Our ambition is to continue the partnership also for future solar power projects.
“The arrangement frees up capital for further investments and enables Fortum to continue to utilise its key competencies to develop, construct and operate solar power plants in India.”
The deal is expected to allow Elite Alfred Berg to start an Indian solar power fund, which will act as a vehicle for international institutional investors to participate in solar power projects in the country.
UKCI managing director Richard Abel said “We look forward to partnering with Fortum and Elite Alfred Berg in the delivery of clean electricity for the equivalent ~315,000 homes.
“This project demonstrates the growing maturity of India’s secondary market for renewables – creating an environment in which private investors have confidence to invest in new greenfield projects that will accelerate the decarbonisation of India’s economy.”
The portfolio includes four solar farms located in the states of Rajasthan, Madhya Pradesh and Karnataka. These solar farms will help in avoiding 330ktpa of CO2 emissions annually.
UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. Its aim is to help developing economies to adapt to climate change and to promote cleaner, greener growth.