Onshore renewables
08 June 2018
Announced today, UKCI will acquire a 40 per cent ownership interest in a 185 MW portfolio of operating solar assets in India. Fortum will retain a 46 per cent interest in the solar farms, with EAB entering an agreement to acquire the remaining 14 per cent.
The transaction represents a significant development in one of the world’s fastest growing solar markets, with the portfolio used to create India’s first unlisted renewables ‘yieldco’ vehicle for international investors.
This market-first initiative will establish a new asset class that seeks to generate regular, predictable cash yield for investors. In doing so, the project will support the further development of India’s secondary market in renewable assets and the recycling of development capital to underpin accelerated deployment of new renewable energy infrastructure.
UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy, which aims to help the world’s developing economies adapt to climate change and promote cleaner, greener growth.
The acquired portfolio comprises four solar farms located in Rajasthan, Madhya Pradesh, and Karnataka. The plants generate enough clean electricity to power ~315,000 homes, avoiding ~330ktpa of CO2 emissions annually.
As part of the agreement, Fortum will continue to provide operation and maintenance services for the assets.
It is expected that the transaction will reach financial close in the third quarter of 2018.
Richard Abel
UKCI Managing Director
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About UK Climate Investments
www.greeninvestmentgroup.com/ukci
UK Climate Investments is a £200 million pilot investment programme mandated to invest in India and sub-Saharan Africa. It targets transformational green energy investments where UK Climate Investments capital can mobilise additional private sector capital on a sustainable basis to promote cleaner, greener growth in these developing economies. UK Climate Investments LLP is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. It forms part of the UK’s aid funded International Climate Finance, which is a UK Government commitment to support emerging markets and developing countries to respond to the challenges and opportunities of climate change. UK Climate Investments is managed by Macquarie Asset Management, the world’s largest infrastructure manager. For further information, please visit: www.greeninvestmentgroup.com/what-we-do/uk-climate-investments and www.gov.uk/guidance/international-climate-finance.
About Fortum
Fortum is a leading clean-energy company that provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 9,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. In 2017, our sales were EUR 4.5 billion and 61% of our electricity generation was CO2 free. Fortum's share is listed on Nasdaq Helsinki. www.fortum.com
About Elite Alfred Berg
EAB Group Plc is a profitable and growing investment service company offering versatile and high-quality asset management services for both consumer clients and professional investors. EAB Group Plc is listed on the First North Finland market maintained by NASDAQ Helsinki Oy (Helsinki Stock Exchanges). EAB Group Plc is the parent company of EAB Group. The Groups’ customer base consists of individuals and corporations that are served nationwide in 17 different offices. The Group employs more than 100 investment professionals, and over 25 tied agents provide its services. On behalf of its clients, the Group manages assets of approximately EUR 3 billion in total. Check out EAB Group’s services at www.eabgroup.fi
