Onshore renewables

UK Climate Investments and Lightsource establish India solar partnership

30 October 2017

Lightsource Renewable Energy and UK Climate Investments, part of the Green Investment Group within Macquarie Infrastructure and Real Assets, have entered in to a partnership platform to fund the development, acquisition and ownership of large scale solar power generation assets in India.

UK Climate Investments and Lightsource will jointly target the greenfield development and acquisition of operational utility scale solar assets in India with the shared ambition of seeding a platform that can create high-quality de-risked investment opportunities in one of the world’s fastest growing solar markets. It will mobilise the large scale deployment of institutional capital through Lightsource.

The seed asset for the partnership will be Lightsource’s 60MWp project in the Indian state of Maharashtra, which reaches financial close simultaneously with this announcement. Participating in a competitive tender process in 2016, Lightsource secured the project in a competitive 450MW tender from the Indian State, managed by Solar Energy Corporation India “SECI”. Over 200,000 solar photovoltaic (PV) panels, will be ground mounted across 240 acres. Upon completion, the solar farm will generate enough clean electricity to power around 75,000 homes.

While UK Climate Investments will provide 49% of the equity for the construction of the first project, it has earmarked up to GBP30m in aggregate for this project and for a broader partnership with Lightsource to develop and construct up to a total of 300MW of PV projects. Third party funding and commercial project finance debt will support the initial and subsequent projects.

This equity investment is the first by the joint venture, which uses official development assistance from the International Climate Fund to leverage private investment into low carbon projects in India and Africa.

As part of the agreement, Lightsource will provide operations and asset management services for the platform in the long-term; building on the company’s experience providing these services in Europe.

 

"The UK Climate Investments partnership, and our first Indian project reaching financial close, are significant milestones in the growth of Lightsource. This project is a testament to the strength of the team we have in India, supported by a global project finance and operational capability, that have made this project a success. UK Climate Investments are a fantastic partner for us to seed the foundations of a large solar and smart energy investment and operating platform in India."

Nick Boyle
CEO for Lightsource

 

"This first investment for UK Climate Investments will provide the necessary sponsor support for the first project in a very promising series of potential solar investments in India, in line with UKCI’s investment mandate. Working with the UK’s leading solar developer, we will look to stimulate a positive transformational impact by bringing industry-leading best practices of risk mitigation and management to the local market."

Martin Stanley
Global Head, Macquarie Infrastructure and Real Assets

 

Media enquiries

UKCI

+44 20 3037 4014
mediaEMEA@macquarie.com

About UK Climate Investments

UK Climate Investments is a £200 million pilot investment programme mandated to invest in India and sub-Saharan Africa. It targets transformational green energy investments where UK Climate Investments capital can mobilise additional private sector capital on a sustainable basis to promote cleaner, greener growth in these developing economies. UK Climate Investments LLP is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. It forms part of the UK’s aid funded International Climate Finance, which is a UK Government commitment to support emerging markets and developing countries to respond to the challenges and opportunities of climate change. UK Climate Investments is managed by Macquarie Infrastructure and Real Assets, the world’s largest infrastructure manager. For further information, please visit: www.greeninvestmentgroup.com/what-we-do/uk-climate-investments and www.gov.uk/guidance/international-climate-finance.

 

About Macquarie Infrastructure and Real Assets

Macquarie Infrastructure and Real Assets (MIRA) is one of the world’s leading alternative asset managers. For more than 25 years, MIRA has partnered with investors, governments and communities to manage, develop and enhance assets relied on by more than 100 million people each day. As at 30 September 2020, MIRA managed approximately €125 billion in assets that are essential to the sustainable development of economies and communities, including: 147 portfolio businesses, ~500 real estate properties and 4.8 million hectares of farmland.

MIRA is a part of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 16,356 people in 31 markets. At 30 September 2020, Macquarie had assets under management of €339.9 billion. For further information, please visit: www.MIRAFunds.com.

 

Lightsource

Liza Gray
+44 (0)20 3167 3678  
Liza.Gray@lightsource-re.co.uk

About Lightsource Renewable Energy

Lightsource is Europe’s leading solar energy company and a global market leader in the development, acquisition and long-term management of international large-scale solar energy projects. Founded in 2010, the company has invested more than £2.5billion in over 300-projects. The company is privately owned by the management team.