Fortum and Elite Alfred Berg (EAB) have entered into a partnership with UK Climate Investments (UKCI) that will introduce a new asset class into the Indian renewables market. UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy, which aims to help the world’s developing economies adapt to climate change and promote cleaner, greener growth.
UKCI will acquire a 40 per cent ownership interest in a 185 MW portfolio of operating solar assets in India. Fortum will retain a 46 per cent interest in the solar farms, with EAB entering an agreement to acquire the remaining 14 per cent. The acquired portfolio comprises four solar farms located in Rajasthan, Madhya Pradesh, and Karnataka. The transaction represents a significant development in one of the world’s fastest growing solar markets, with the portfolio used to create India’s first unlisted renewables ‘yieldco’ vehicle for international investors.