Emerging markets infrastructure investor Actis has completed its acquisition of two solar projects in India, totalling 400 megawatts. The projects, located in Andhra Pradesh and Madhya Pradesh, were acquired by the Actis Long Life Infrastructure Fund (ALLIF) from Acme Solar Holdings Ltd.
Actis is a leading investor in the Indian renewables sector, via the ALLIF and Actis Energy Funds. ALLIF targets large operating renewable assets for the long term, maximizing yield through value creation.
Actis’s recent investments through its Energy Funds include Ostro Energy, which was sold in 2018 in one of the largest renewable energy deals in India, and Sprng Energy, which currently has 648 megawatts of operating assets and a further pipeline of 1100 MW in various stages of execution.
Renewable power is a critical part of India’s energy generation capacity. Over the last five years, overall renewable capacity in the country has doubled from 32GW to 84GW driven by solar and wind. Energy demand is set to increase by 6 to 7% per annum.
“India is one of the fastest growing solar markets in the world and the government’s commitment to increasing renewable energy production continues to create attractive investment opportunities for our ALLIF and Energy funds,” says SanjivAggarwal, partner of Actis responsible for its energy and infrastructure business in the region. “We will continue to focus on M&A and PPA auctions in India.”
Acme is one of the largest independent solar power producers in India, with a 5GW portfolio. Founder Manoj Kumar says India has a lot of potential for solar power, and his company is very well positioned to tap this potential and create value for utilities and consumers by offering power at a very low cost. “Asset divestment to long-term investors like Actis helps unlock equity value and aids our growth plans in India,” he adds.
Actis, founded in 2004, invests in growth markets across Africa, Asia and Latin America.