Acme Solar on Tuesday announced closure of a deal with global renewable asset owner Brookfield Renewable for developing 450 mega-watt (MW) solar power generation assets in Rajasthan. The financial details of the deal were not disclosed. The deal closely follows Acme signing an agreement last week with Danish investment firm IFU and United Nations’ operational arm UNOPS S3i for developing 250 MW solar power plants in Rajasthan. Earlier in the month, Norwegian renewables player Scatec had agreed to buy 50% stake in Acme’s upcoming 900 MW generation assets in the same state.
Calling India “one of the largest and fastest-growing renewable markets globally,” Connor David Teskey, CEO of Brookfield Renewable Partners, recently said in its earnings call in May that “we would very willingly deploy meaningful dollars in India”. Without identifying a 450 MW solar asset which the company was in the process of acquiring in India, Teskey had said that “we expect to invest $70 million or $20 million net to Brookfield renewable of equity in the project and are targeting 20% plus return”. Brookfield started investing in India in 2017, and in 2019, it acquired 210 MW of wind projects in the country for Rs 460 crore. In March 2020, Brookfield Renewable also completed a refinancing totalling Rs 146 crore associated with a solar portfolio in the country.
Acme Solar’s current portfolio stands at 5,000 MW, of which 2,300 MW are operating and the remaining are under construction. “We appreciate the enthusiasm from global renewable energy companies and investors who strive to be a part of India’s success story,” said Manoj Upadhyay, founder and chairman of the ACME Group.
The solar project where Brookfield is investing includes a 25-year power purchase agreement (PPA) with Maharashtra State Electricity Distribution Company. The Maharashtra discom has two PPAs with Acme Solar — a 250 MW project at Rs 2.72/unit and a 300 MW project for Rs 2.74/unit — and it was not immediately clear which project is part of the Brookfield deal.