Virescent Renewable Energy Trust, a platform established by global investment firm KKR to purchase renewable energy assets in India, has announced the acquisition of a 49 MW solar portfolio from five Focal Energy special purpose vehicles (SPVs) for Rs 3.54 billion. Madhya Pradesh, Punjab, and Rajasthan are the locations of the solar assets. The portfolio includes off-takers from both the federal and state governments.
Globus Steel and Power, Focal Energy Solar One India, Focal Energy Solar India, and SunBorne Energy Rajasthan Solar would all be 100 per cent owned by Virescent. In addition, Virescent will acquire a 66 per cent stake in Focal Energy Solar Three India through an indirect acquisition. The purchase is in line with Virescent’s investment strategy, which focuses on maintaining consistent distribution to unitholders through owning assets with long-term contracts, as stated in the trust deed.
Globus owns and runs a 20 MW solar power plant in Madhya Pradesh, which was completed in January 2016. On June 16, 2014, Globus signed a 25-year PPA with Madhya Pradesh Power Management Company at a tariff of Rs 6.969 per kWh. In Madhya Pradesh, Focal Energy Solar One India operates a 20 MW solar power project that was completed in June 2015. On April 25, 2014, FESOI signed a 25-year PPA with Solar Energy Corporation of India for Rs 5.45 per kWh. The SPV made a total revenue of Rs 194 million in FY 2020-21.
In Punjab, Focal Energy Solar India has a 4 MW solar facility that was completed in March 2015. On December 31, 2013, the SPV signed a 25-year PPA with Punjab State Power Corporation for Rs 8.30 per kWh. Rajasthan Solar, operated by SunBorne Energy, is a 5 MW solar power facility that was completed in March 2013. On January 27, 2012, the SPV signed a 25-year PPA with NTPC Vidyut Vyapar Nigam for Rs 8.99 per kWh. Focal Energy Solar Three India operates the common transmission infrastructure of Focal Energy Solar One India and Globus.