Vector Green Energy Private Limited, an independent power producer (IPP) which operates wind and solar projects, has acquired 225 MW (AC) solar generation capacity from RattanIndia, according to a source.

The acquirer is a wholly-owned subsidiary of India Infrastructure Fund – II (IIF II), which is managed by Global Infrastructure Partners India LLP, an affiliate of Global Infrastructure Partners (GIP). It owns 275 MW of solar projects across the country.

The deal amount was not disclosed. This acquisition will nearly double its solar portfolio in the country to 500 MW.

According to Mercom India Solar Project Tracker, the projects acquired by Vector Green are located in the following states –

• Maharashtra (44 MW)
• Uttar Pradesh (52 MW)
• Rajasthan (70 MW)
• Karnataka (50 MW)
• Also includes few small-scale projects including 100 rooftop sites totaling 9 MW

Last year, the company completed the refinancing of two solar projects with 223 MW of combined capacity in Telangana.

The company’s previous solar project acquisitions include a 45 MW project acquired from Punj Lloyd, 40 MW project from IL&FS Energy and a 190 MW from First Solar.

With this acquisition, Vector Green Energy joins a long line of companies bringing in foreign direct investment into the Indian renewable sector. India’s renewable industry attracted FDI worth $1.4 Billion in 2018-19.

Recently, Mercom reported that Singapore-based renewable company Sembcorp Industries (Sembcorp) has announced that it will acquire the remaining 5.95% stake in its Indian arm, Sembcorp Energy Ltd. (SEIL) for ₹4,060 million (~$56.9 million).

Last year, Investment fund Global Infrastructure Partners (GIP) closed on a deal to acquire a 100 percent stake in renewable energy project developer Equis Energy. The total transaction value of $5 billion includes the assumption of $1.3 billion in Equis Energy debt.

According to Mercom Capital Group’s 9M and Q3 2019 Global Solar Funding and M&A Report, project acquisition activity was lower in 9M 2019, with 15.9 GW of solar projects acquired, compared to 23.6 GW acquired in the same period last year. In Q3 2019, a total of 34 projects for a combined 4.3 GW were acquired. Project developers were the major acquirers of solar assets accounting for about 2.2 GW of acquisitions in Q3 2019. Investment firms and funds picked up 739 MW of projects, and utilities and independent power producers (IPPs) acquired 536 MW of projects.

Image credit: Vector Green