French energy major Engie is giving up a 74% stake, totalling 813MW of capacity, in its 12 solar assets in India, to Edelweiss Infrastructure Yield Plus (EIYP) and one of its portfolio companies, Sekura Energy Limited.
The divestment says Engie, will help the company to reduce its net debt by more than €400 million ($443.7 million) and is aligned with the company's strategy to develop-build-share-operate (DBSO) under which it sells off part of its interests in projects post-commissioning.
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Engie said it will collaborate further with EIYP in an ‘ambitious strategic partnership’ to expand a growing solar platform in which Engie will continue to look after development, construction and operation of present and future solar plants.
“EIYP will benefit from access to a strong future pipeline of quality solar assets to be developed and constructed by Engie under the terms of the agreement,” stated EIYP Head, Subahoo Chordia. “This will also grow EIYP’s Sekura Energy platform and make us a large investor in Indian energy space.”
The sale for 813 MW is expected to be completed within the first half of 2020. At present, Engie has over 1.5GW of renewables in its portfolio, comprised of wind and solar power plants, the latter concentrated in the states of Punjab, Rajasthan, Uttar Pradesh, Telangana, Andhra Pradesh and Gujarat.
The energy transition and renewable energy are hot topics disrupting the utility industry in India and will be a key focus at the POWERGEN INDIA and Indian Utility Week summit which takes place in New Delhi. For more details visit https://www.powergen-india.com/ or indian-utility-week.com