Actis, acquisition of Fortum’s solar energy assets in India for $333 million

Actis, a leading private equity investor in emerging markets, recently announced the acquisition of Fortum’s solar energy assets in India for $333 million. The acquisition, through Actis’s renewable energy platform Sprng Energy, includes seven operating solar projects with a total capacity of 300 MW.

In this blog article, we will discuss the details of the Actis-Fortum deal and the implications for India’s renewable energy sector.

Details of the Deal

Actis’s acquisition of Fortum’s solar assets includes seven operating solar projects in Rajasthan and Karnataka, with a combined capacity of 300 MW. The projects are backed by long-term power purchase agreements (PPAs) with state distribution companies and central public sector undertakings.

Sprng Energy, Actis’s renewable energy platform, is expected to assume full ownership and operational control of the projects upon completion of the transaction.

The acquisition is expected to be completed by the end of 2021, subject to regulatory approvals.

Implications for India’s Renewable Energy Sector

India is one of the fastest-growing renewable energy markets in the world, with a target to achieve 450 GW of renewable energy capacity by 2030. The country’s solar energy sector has been growing rapidly in recent years, driven by falling costs and favorable government policies.

The Actis-Fortum deal is a significant development for India’s renewable energy sector, as it demonstrates continued investor confidence in the country’s solar energy market. The deal also reflects the growing trend of consolidation in the sector, as large players acquire smaller players or buy out their partners.

The acquisition of Fortum’s solar assets by Actis is expected to further strengthen Sprng Energy’s position as a leading renewable energy platform in India. The addition of 300 MW of solar capacity will bring Sprng Energy’s total capacity to over 2 GW.

Conclusion

The Actis-Fortum deal is a positive development for India’s renewable energy sector, as it demonstrates continued investor confidence in the country’s solar energy market. The acquisition of Fortum’s solar assets by Actis through Sprng Energy will further strengthen the platform’s position as a leading player in the Indian renewable energy market.

As India continues to pursue its ambitious renewable energy targets, we can expect to see further investments and consolidation in the sector, as investors seek to capitalize on the growing demand for clean energy.