Actis, Brookfield among front runners for Fortum Oyj’s 500 MW Indian solar projects
Private equity firms Actis Llp and Brookfield Asset Management Inc. have emerged among the front runners for acquiring a majority stake in Finland’s state-controlled power utility Fortum Oyj’s 500 megawatt (MW) Indian solar projects, said two people aware of the development.
The stake sale deal by the third-largest Nordic utility, potentially valued at about Euro 500 million, is set to rank among the largest in India’s green energy space, with Kotak Investment Banking running the sale process.
Also Read: India solar tariffs at record low
Despite the coronavirus pandemic, deal activity continues unabated in India’ green energy space. Recently the single-largest foreign clean energy investment announcement in India was made by Japan’s ORIX Corp. for $980 million in Greenko for a 17% stake.
Also, the stake sale by one of the largest nuclear and hydropower generators in Europe and Russia comes at a time when India expects its solar power tariff of coming down to sub ₹2 per unit level, after touching a record low of ₹2 per kilowatt- hour in a bid conducted by Solar Energy Corporation of India (SECI) last month.
Sanjay Aggarwal, managing director, Fortum India Pvt. Ltd. declined comment.
These projects for stake sale are to be brought under a new platform wherein the new investor will put in a significant equity contribution. This new platform co-funded by Fortum is expected to develop around 500 MW every year in India and overseas.
