IDFC Alternatives Now Targets First Solar’s India Assets

IDFC Alternatives, which is the asset management arm for the infrastructure-based lender, is now in talks to acquire First Solar’s 200 MW of renewable power assets in India. It is going to be a deal that will potentially be valued at around $200 million.

First Solar is basically an US-based PV panel maker. It is one of the first overseas firms to be entering the Indian solar energy market. It considers India as the second biggest market after United Stated when it comes to total shipments. IDFC Alternatives is keen on buying First Solar’s power generating assets, an internal source stated.

The source also went on to state that the development actually comes with the dropping solar power tariffs due to the plunging rates of the solar modules. The module prices is estimated to drop further this year as the global supply is now exceeding the actual demand.

Most of the solar power makers in the country have been getting the solar equipment and modules from nations like China where it is relatively cheaper. As per the information that is put up on the website, the IDFC Alternatives infrastructure team has around $1.8 billion that is under management. The Indian solar generation sector is getting highly competitive.

Solairedirect from France went on to win the rights to install 250 MW solar plant in Kadapa (Andhra Pradesh) and also sell power to NTPC Limited at a very low tariff rate of INR 3.15/kWh. The tariff was low previously when the rate was INR 2.97/kWh for the 750 MW project in Rewa (Madhya Pradesh). The winning bid even went on to offer levelized tariff, a value that is financially equivalent to various annual tariffs in the period of the PPA (Power Purchase Agreement) of nearly INR 3.30/unit.

India aims to be generating around 175 GW of renewable energy capacity by the end of 2022. Out of this, around 100 GW will be coming from solar projects. There have been a lot of activities happening in the solar power space.

Australia-based Macquarie Group Limited now aims to purchase around 330 MW of operational solar assets from the one and only HPPPL (Hindustan Power projects Private Limited) for an estimated value of around $600 million.

Marque deals in the Indian energy space also include Tata Power Co. Limited purchasing 1.1 GW of renewable energy portfolio of Welspun Energy Limited for around $1.4 billion and Greenko Energies Private Limited, a Hyderabad-based company, supported by the sovereign wealth fund GIC Holdings (Singapore-based company) and ADIA (Abu Dhabi Investment Authority) buying SunEdison’s Indian assets for a value of around $392 million in the year 2016.

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