August 30 (Renewables Now) - Indian company Essel Infraprojects Ltd has agreed to offload 205 MW of operational solar assets from its 658-MW portfolio to Adani Green Energy, part of domestic conglomerate Adani Group.
The enterprise value of the deal will stand at INR 13 billion (USD 181.2m/EUR 164.2m), the two companies said in separate statements. The particular power plants are located in the states of Punjab, Karnataka and Uttar Pradesh and have long-term power purchase agreements (PPAs) with state-owned power distribution firms. The average remaining life of those contracts is 22 years.
Essel’s 658-MW portfolio consists of 310 MW of operational solar parks, including the 205 MW subject to the Adani deal, while the remaining 375 MW are under-construction projects awarded in national and state auctions. The company is also in talks to sell its remaining assets as part of the group’s efforts to lower debt and repay its lenders.
The sale is expected to be completed by the end of next month. It will further expand Adani Green Energy’s renewable portfolio, which currently comprises about 2.5 GW of plants in operation and 3 GW of projects that will be commissioned over the next two years.
(INR 10 = USD 0.139/EUR 0.126)