Onshore renewables

UK Climate Investments partnership to drive innovation in Indian renewables sector

08 June 2018

Fortum and Elite Alfred Berg (EAB) have entered into a partnership with UK Climate Investments (UKCI) that will introduce a new asset class into the Indian renewables market.

Announced today, UKCI will acquire a 40 per cent ownership interest in a 185 MW portfolio of operating solar assets in India. Fortum will retain a 46 per cent interest in the solar farms, with EAB entering an agreement to acquire the remaining 14 per cent. 

The transaction represents a significant development in one of the world’s fastest growing solar markets, with the portfolio used to create India’s first unlisted renewables ‘yieldco’ vehicle for international investors.

This market-first initiative will establish a new asset class that seeks to generate regular, predictable cash yield for investors. In doing so, the project will support the further development of India’s secondary market in renewable assets and the recycling of development capital to underpin accelerated deployment of new renewable energy infrastructure.

UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy, which aims to help the world’s developing economies adapt to climate change and promote cleaner, greener growth.  

The acquired portfolio comprises four solar farms located in Rajasthan, Madhya Pradesh, and Karnataka. The plants generate enough clean electricity to power ~315,000 homes, avoiding ~330ktpa of CO2 emissions annually.

As part of the agreement, Fortum will continue to provide operation and maintenance services for the assets.

It is expected that the transaction will reach financial close in the third quarter of 2018.

 

"UKCI is delighted to provide the necessary long-term capital to cornerstone this innovative investment vehicle, helping the continued development of India’s fast-growing renewables sector."

Richard Abel
UKCI Managing Director

Media enquiries

UKCI

+44 20 3037 4014
mediaEMEA@macquarie.com

About UK Climate Investments

UKCI is a £200 million pilot investment programme mandated to invest in India and sub-Saharan Africa. It targets transformational green energy investments where UKCI capital can mobilise additional private sector capital on a sustainable basis to promote cleaner, greener growth in these developing economies. UK Climate Investments LLP (UKCI) 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 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. For further information, please visit: www.greeninvestmentgroup.com/funds/international/ 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 twenty-five 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 31 March 2019, MIRA managed approximately £99 billion in assets that are essential to the sustainable development of economies and communities, including; 155 portfolio businesses, 600+ properties and ~4.7 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 more than 15,700 people in 30 markets. For further information, please visit: www.MIRAFunds.com.

 

About Fortum

Fortum is a leading clean-energy company that provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 9,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. In 2017, our sales were EUR 4.5 billion and 61% of our electricity generation was CO2 free. Fortum's share is listed on Nasdaq Helsinki. www.fortum.com

About Elite Alfred Berg

EAB Group Plc is a profitable and growing investment service company offering versatile and high-quality asset management services for both consumer clients and professional investors. EAB Group Plc is listed on the First North Finland market maintained by NASDAQ Helsinki Oy (Helsinki Stock Exchanges). EAB Group Plc is the parent company of EAB Group. The Groups’ customer base consists of individuals and corporations that are served nationwide in 17 different offices. The Group employs more than 100 investment professionals, and over 25 tied agents provide its services. On behalf of its clients, the Group manages assets of approximately EUR 3 billion in total. Check out EAB Group’s services at www.eabgroup.fi