First Solar India, the Indian arm of the US-based solar photovoltaic module major First Solar Inc, has struck a deal to divest 190 MW of solar power assets in the country to IDFC Alternatives.
Seven projects, located in Andhra Pradesh and Telangana, have been executed by the company as an independent power producer.
While the plants in Telangana are located in Mahbubnagar and Rangareddy districts, those in Andhra Pradesh are at Hindupur and Chittoor.
These were commissioned in phases between May 2015 through till December 2016 and have power purchase agreements with distribution companies of Telangana and AP.
Apart from being a major supplier of modules to the solar projects in the domestic market, the US company develops projects and later divests them across different geographies. Subject to customary regulatory approvals, First Solar Power India entered into an agreement with India Infrastructure Fund II, represented by its Investment Manager, IDFC Alternatives, to divest these projects.
Confirming the development, Sujoy Ghosh, First Solar India Country Head, said: “We are able to demonstrate the ability to recycle capital, by creating a portfolio of de-risked assets, utilising the reliable and superior field performance of First Solar’s CdTe (cadmium telluride) thin Film PV module technology, that delivers predictable and reliable cash flows, and thereby creates value for sophisticated financial investors like IDFC Alternatives.”
Aditya Aggarwal, Partner, IDFC Alternatives, in statement said, “Consistent with the stated strategy of aggregating operating renewable assets, IIF II is well on its way to achieving an installed base of 400-450 MW of operating renewable assets by the end of the current financial year.”