Radiance Renewables, a 100 percent subsidiary of the Green Growth Equity Fund (GGEF), which is managed by EverSource Capital, India’s leading Climate fund has signed an agreement with Azure Power Global Limited to acquire the latter’s rooftop assets.
According to Radiance’s statement, the acquisition deal worth Rs 536.5 crore, includes 152.5 megawatt (MW) of projects, out of which 8.1 MW is under construction and 18.5 MW of recently commissioned assets. Market experts believe that the deal constitutes one of the largest acquisitions of rooftop solar assets in India.
With it, Radiance will be in a position to service high-quality customers such as Indian Railways, Delhi Metro Rail Corporation, JNV, Delhi Jal Board amongst others where 99 per cent of power purchase agreements are for 25 years.
Currently, Radiance manages an operational capacity of 95 MW in India across 13 sites. It has close to 40 MW of projects under construction and another 60 MW under development. Radiance also plans to continue building more projects under Open Access and Behind the Meter, targeting a portfolio of 1.5 GW.
“This strategic acquisition will position Radiance as a significant pan India player in the Commercial, Industrial and Institutional segments with exposure to long term power purchase agreements with quality customers based on net metering in the build-out of its distributed generation platform,” said Manikkan Sangameswaran, Executive Director, Radiance Renewables.
For Azure, the company remains committed to capital discipline and their focus will be on the creation of shareholder value. Ranjit Gupta, CEO, Azure Power said, “This sale allows us to enhance returns on invested capital through efficiency gains and cost optimization”.