India’s first power-centric infrastructure investment trust (InvIT), IndiGrid, has acquired its first solar asset. So far, its portfolio was fully circumscribed by power transmission assets.
In a release, IndiGrid said that it has completed acquisition of 100 per cent equity stake in two operational solar power assets with aggregate capacity 100 mw, from Fotowatio Renewable Ventures (FRV) at an enterprise value of around Rs.660 crore.
This, according to the IndiGrid release, marks the first renewable energy acquisition by any InvIT in the country.
Located in AP
The newly acquired solar assets are located in a high-radiation zone in the 400-mw Ananthapuram solar park in Andhra Pradesh. Both the solar power projects have a 25-year power purchase agreement with Solar Energy Corporation of India (SECI), at fixed tariffs.
The projects have been operational for over two years and have a robust track record of generation and collections since inception, the IndiGrid release said.
Excited to diversify, says CEO
Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said “We are excited to diversify our portfolio and add the first set of solar assets. While power transmission assets remain at the core of IndiGrid’s growth strategy, we believe such attractive opportunities to acquire good quality solar projects ties in well with our strategy of providing predictable cash flows to our investors and reinforces our commitment to be a socially responsible organization.”
Impact on portfolio
With this acquisition, IndiGrid’s asset portfolio will now consist of 14 diversified power projects consisting of 40 transmission lines (aggregating around 7,570 ckm), 11 substations (around 13,550 MVA capacity) and 100 mw of solar power plants. The entire assets spectrum is spread over 18 states and one Union Territory.
Long-term PPAs
This transaction is in line with IndiGrid’s strategy to acquire solar projects with long term power purchase agreements, operational track record and financially strong counterparties or off-takers such as SECI and NTPC. In addition to long contract life and low-risk cash flows, this asset complements IndiGrid’s transmission portfolio with synergies on operations and regulatory establishments, the release added.
Featured photograph shows one of the two solar power plants in Andhra Pradesh, now acquired by India Grid Trust (IndiGrid).
