Acme Solar on Thursday said it has signed an agreement with Danish investment firm IFU and United Nations’ operational arm UNOPS S3i for developing 250 megawatt (MW) solar power generation assets in Rajasthan.
Though the financial details of the deal were not disclosed, Acme Solar said in a statement “the total value of the project is the equivalent of just under $200 million, of which about a quarter are financed through equity contributions by the three co-investors”.
The project is expected to be commissioned in December.
“This partnership is a key milestone towards Acme’s vision for developing a portfolio of 25,000 MW of renewable energy projects which comes in line with India’s plans to achieve 4,50,000 MW of renewable energy power by 2030,” said Manoj Upadhyay, founder and chairman of ACME Group. Acme Solar’s current portfolio stands at 5,000 MW, out of which 2,300 MW are operating and the remaining under construction. For this 250 MW plant where the two foreign firms are investing, Acme had quoted a tariff of `2.48/unit in the auctions conducted by the Solar Energy Corporation of India (Seci), and was issued the letter of award in March 2019. The power from the solar unit is scheduled to be supplied to Rajasthan.
“UNOPS is proud to support India’s climate targets and all of the partners in this landmark renewable energy project,” Grete Faremo, UN under-secretary-general and UNOPS executive director, said.
The deal also marks the first investment under the India-Denmark green strategic partnership signed in 2020. IFU will hold 39% ownership in the project, and its investment is made on behalf of the Danish SDG Investment Fund, which is backed by the Danish state, larger Danish pension funds and other private investors.