Infrastructure investors Actis, Edelweiss, and Malaysian state-owned oil and gas company Petronas are reportedly engaged in discussions regarding the potential acquisition of a 185-MW solar portfolio in India currently owned by Finnish utility Fortum Oyj and its partners.
According to sources, the trio of suitors is in the due diligence phase and is expected to submit final offers in the near future. The deal's enterprise value is estimated to be at least USD 150 million (EUR 137.6m).
The targeted portfolio is a collaborative venture with Fortum holding the largest stake at 46%, while Macquarie-backed UK Climate Investments and Finnish asset manager Elite Alfred Berg own 40% and 14%, respectively. The portfolio includes a 100-MW photovoltaic farm situated within the Pavagada Solar Park in Karnataka, two parks totaling 75 MW in Rajasthan, and an additional 10-MW plant in Madhya Pradesh. All assets operate under 25-year power purchase agreements with state-owned NTPC Ltd and Solar Energy Corporation of India Ltd (SECI).
The potential divestment is being facilitated by investment bank Kotak Mahindra Capital, supporting Fortum and its partners in the process. Fortum, as of the end of 2022, possessed 685 MW of installed capacity in India and is actively constructing 800 MW of solar parks in Karnataka and Gujarat.
Notably, both of its partners in the portfolio under consideration have other ongoing renewable operations in India. This development signifies the continued interest of global investors in India's burgeoning solar energy market.
