Ayana Renewable Power Private Limited, backed by the U.K.-based CDC Group, has announced the acquisition of First Solar’s two solar projects with a capacity of 40 MW. The company has not disclosed the terms of the transaction.

According to Mercom’s India Solar Project Tracker, Ayana has 1.1 GW of large-scale solar projects under the development pipeline.

The company has acquired two solar power projects located in Karnataka as a part of its expansion plans. The two solar projects have been operational for more than two years. The projects offset nearly 700,000 metric tons of CO2 every year, according to the company.

The two projects are under a 25-year power purchase agreement (PPA), and supply power to the state distribution companies (DISCOMs), Chamundeshwari Electricity Supply Company Limited, and Gulbarga Energy Supply Company Limited.

Speaking on the acquisition, Shivanand Nimbargi, managing director and chief executive of Ayana, said, “This is the first step in Ayana’s long journey of acquiring high-quality operating renewable assets. With $330 million (~$24.45 billion) committed equity, Ayana will continue to pursue similar opportunities for acquisition and focus on inorganic growth.”

Last year, EverSource Capital and the National Investment and Infrastructure Fund of India (NIIF) announced their partnership with Ayana, which was likely to see investment to the tune of $330 million (₹24.45 billion) cumulatively by all the three partners.

Previously, Mercom had reported that IDFC Alternatives’ India Infrastructure Fund II (IIF II), through its wholly-owned subsidiary Vector Green Energy, had entered into definitive agreements with First Solar and its affiliates to acquire seven operating solar projects with a total capacity of 190 MW across Andhra Pradesh and Telangana. The deal was worth approximately $300 million (~₹19.3 billion).

As per Mercom’s 1H and Q2 2020 Solar Funding and M&A Report, solar project acquisition activity was up in 1H 2020 with 14.7 GW compared to 11.6 GW acquired in the same period last year. Only about 3 GW of solar projects were acquired in Q2 2020 compared to 5.7 GW in Q2 2019.