India announces plans to add 11 GW this year as it seeks to become second-largest solar market
Fortum will sell 54% of its 185 MW solar PV portfolio in India to UK Climate Investments (40%) and Elite Alfred Berg (14%). And the latter has the opportunity to buy another 16% share. Fortum will become the minority owner and continue to provide operation and maintenance (O&M) services to the plant.
The transaction amount will be around 150 million euros and is currently awaiting approval from EU regulators and is expected to close in the third quarter of this year.
Richard Abel, managing director of UK Climate Investments, said the project is a testament to the maturing of India's secondary market for renewable energy - it is creating an environment that gives private investors the confidence to invest in new greenfield projects, which will accelerate the Indian economy decarbonization trajectory.
Fortum emphasized that it will not exit the Indian PV market, but instead seeks to use the additional capital to invest in new assets in India. It said the deal was an important step in the company's solar strategy. The company plans to use the freed up capital for further investment and for Fortum to continue to leverage its core competencies in the development, construction and operation of solar power plants in India.
The PV market in India is currently developing strongly, and its 25-year power purchase agreement is very attractive. In 2017, India's new photovoltaic capacity reached 9.1 GW, making it the third largest market after China (53 GW) and the United States (10 GW). This year, India announced that it will add 11 GW, striving to become the second largest solar market.
Reposted from:
https://www.pv-magazine-china.com/