IDFC Alternatives Could Acquire First Solar’s India Assets
First Solar may have found a buyer for its 200 megawatts of assets in India. An equity fund is reportedly in talks with the American solar power company to acquire these assets.
According to media reports, IDFC Alternatives is in talks with First Solar to acquire 200 megawatts of solar power projects located in Andhra Pradesh and Telangana. The expected deal size is $200 million. First Solar had won rights to develop these projects through competitive auctions. The company has a total of 260 megawatts of capacity operational in India.
The sharp fall in solar power tariff bids in India may have pushed First Solar to offload such a large portion of its assets.
In 2014, the company announced plans to install a 45-megawatt solar power project in the southern Indian state of Telangana. The project entered a long-term agreement for the sale of electricity at a tariff of Rs 6.49/kWh (9.9¢/kWh).
Solar power tariffs subsequently fell to a record low of Rs 3.30/kWh (5.1¢/kWh) and then further to Rs 3.15/kWh (4.9¢/kWh) in recent auctions. In early 2015, First Solar made a commitment to set up 5 GW of solar power capacity in India over a period of 5 years. The company has shared no updates on that commitment since then.
First Solar, however, remains one of the largest suppliers of solar power modules to India. The company has supplied more than 1 gigawatt of solar power modules to India.
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