Despite the record-breaking solar power bids for large-scale solar power projects which have raised concerns about the financial viability of such projects, foreign investors continue to scout for investments opportunities in the Indian solar market.
Private equity fund Actis is reportedly looking to invest $500 million in the Indian solar power market. The target of this investment would be Solenergi Power, one of the winners of the 750 megawatts (MW) Rewa solar power tender.
Solenergi Power had secured 250 MW capacity in the Rewa solar power park at the joint-lowest tariff of the time, Rs 3.30/kWh (5.1¢/kWh), levelised for a period of 25 years. The project will be located in the state of Madhya Pradesh and is perhaps the most incentivised solar project in India in terms of debt finance, options to sell power, and land availability.
This will be the second investment by Actis in the Indian renewable energy space. The investment fund previously committed $280 million towards Ostro Energy’s expansion plans. Ostro Energy aims to have an operational base of 1,000 MW by 2019 and currently has assets of 350 MW operational or under construction.
Ever since the present government increased the renewable energy targets for 2022 several international companies have invested in India. The government has set a target for 100 gigawatts (GW) solar power and 60 GW of wind energy capacity.
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