NextEnergy Capital’s institutional solar fund called NextPower III has announced its first acquisition in India.
The company has acquired a 27.4 MW project located in Odisha. The solar project was acquired from IBC SOLAR Energy GmbH, the international project division of IBC SOLAR AG, a solar and energy storage company based in Germany. The project has been in operation since May 2018.
NextEnergy Solar Fund is a listed solar infrastructure investment company focused on the United Kingdom and other OECD (Organization for Economic Cooperation and Development) countries. OECD is an intergovernmental economic organization with 37 member countries, founded in 1961 to stimulate economic progress and world trade.
NextPower III is a private ESG infrastructure fund established to invest in the international solar sector, specifically to fund the construction and long-term ownership of solar power projects. NextPower III’s target markets comprise mainly OECD countries. According to NextPower III, it has a total of 385 MW of installed solar projects.
The primary goal of the company is to acquire solar projects which are at the ready-to-build status or in operation across high-growth international markets. The company is planning to increase its portfolio in the U.S., Latin America, Southern Europe, and India.
Speaking on the acquisition, Filinto Martins, Managing Director and Head of NextPower III, said, “This acquisition allows NextPower III to further increase its presence globally and enter the Asia Pacific market where we have secured a pipeline of further opportunities. The transaction is another opportunity to execute on an operating asset in a carefully selected country (where the NextEnergy Capital Group has been present for over two years through its asset management company WiseEnergy), at attractive risk-adjusted returns. India has a strong focus on the transition to renewable energy, and we are proud to play a significant part in that.”
Investments in the Indian solar industry totaled $970 million (~₹72.9 billion) in the first quarter (Q1) of 2020, according to Mercom’s Q1 2020 India Solar Market Update. Investments were 66% lower year-over-year compared to $2.8 billion (~₹195.4 billion) recorded in Q1 2019.
Previously, Mercom had reported that IBC SOLAR had signed a power purchase agreement with Solar Energy Corporation of India for a 20 MW solar project located in Odisha. IBC SOLAR had raised approximately ₹980 million (~$15.3 million) in debt financing for the project from L&T Infrastructure Finance.
Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.