Virescent Renewable Energy Trust, a platform created by global investment company KKR to acquire renewable energy assets in India, announced that it had acquired a 49 MW solar portfolio from five special purpose vehicles (SPVs) of Focal Energy for ₹3.54 billion (~$46.73 million)
The acquisition is in line with Virescent’s investment strategy provided in the trust deed, focusing on ensuring stable distribution to unitholders by owning assets with long-term contracts. The solar assets are located in Madhya Pradesh, Punjab, and Rajasthan. The portfolio has a mix of central and state government off-takers.
Virescent will own 100% equity in the SPVs Globus Steel and Power, Focal Energy Solar One India, Focal Energy Solar India, SunBorne Energy Rajasthan Solar. Virescent will also indirectly acquire 66% in Focal Energy Solar Three India.
Globus was incorporated on February 23, 2011. It operates a 20 MW solar power project in Madhya Pradesh, commissioned in January 2016. Globus entered into a power purchase agreement (PPA) with Madhya Pradesh Power Management Company on June 16, 2014, at a tariff of ₹ 6.969 ($0.092)/kWh for 25 years. During FY 2020-21, Globus had total revenue of ₹259 million (~$3.42 million).
Focal Energy Solar One India was incorporated on February 28, 2014. It operates a 20 MW solar power project in Madhya Pradesh, commissioned in June 2015. FESOI entered into PPA with Solar Energy Corporation of India (SECI) on April 25, 2014, at ₹5.45 ($0.072)/kWh for 25 years. During FY 2020-21, the SPV had total revenue of ₹194 million (~$2.56 million).
Focal Energy Solar India operates a 4 MW solar project in Punjab, commissioned in March 2015. The SPV entered into PPA with Punjab State Power Corporation on December 31, 2013, for 25 years at ₹8.30 ($0.11)/kWh. During FY 2020-21, FESI had total revenue of ₹60.7 million (~$802,035).
SunBorne Energy Rajasthan Solar was incorporated on May 24, 2010. It operates a 5 MW solar power project in Rajasthan, commissioned in March 2013. The SPV has a PPA with NTPC Vidyut Vyapar Nigam signed on January 27, 2012, for 25 years at ₹8.99 (~$0.12)/kWh. During FY 2020-21, the SPV had total revenue of ₹85.1 million (~$1.12 million).
Focal Energy Solar Three India operates the common transmission infrastructure of Focal Energy Solar One India and Globus. During FY 2020-21, FESI-3 had total revenue of ₹15.7 million (~$207,445).
Virescent Infrastructure had filed a draft placement memorandum with the Securities and Exchange Board of India and the National Stock Exchange of India to list its infrastructure investment trust (InvIT) on the Stock Exchange in July. The company expects to raise gross proceeds of ₹4.25 billion (~$57.12 million) through this listing for its solar assets in India.
In May, it acquired 76 MW of solar projects from Singapore-based Sindicatum Renewable Energy.