India’s Torrent Power Ltd has signed a deal to buy the special purpose vehicle (SPV) that holds a 50-MW solar power plant in the state of Maharashtra, it announced on Friday.
Torrent Power has agreed to pay INR 3.17 billion (USD 43m/EUR 36m) to cover the enterprise value of the target, including the VGF receivable. The solar park being acquired has a 25-year power purchase agreement (PPA) with the Solar Energy Corporation of India Ltd.
The company will acquire the said SPV from Lightsource India Ltd and Lightsource Renewable Energy (India) Ltd. Lightsource India is a joint venture between Lightsource BP and UK Climate Investments LLP (UKCI). The latter, in turn, is co-owned by the Green Investment Group and the UK government's Department for Business, Energy and Industrial Strategy (BEIS).
With this acquisition, the power utility will increase its total generation capacity, including under-construction projects, to more than 4.7 GW. Of that, renewable energy accounts for over 1.6 GW.