Engie Closes Deal With Edelweiss Yield Plus For India Solar Assets

In one of the largest renewable energy deals during the past year, Edelweiss Infrastructure Yield Plus (EIYP), an alternative investment fund by Edelweiss Alternative Asset Advisors, announced yesterday that it has acquired a 74 per cent stake in French energy major Engie Group’s solar portfolio in India.

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The investment from the fund will free up Engie to expand its solar portfolio further, or perhaps even limit its exposure to the Indian market, depending on the management view of the market in India. the deal, first announced in January 2020, covers 12 solar assets of Engie India, equaling 813 MW for now.

Engie has a total operating renewable portfolio of over 1.5 GW in India, after adding its wind portfolio.

EIYP's release highlights how the deal will give it access to a 2 gigawatt (GW) pipeline of Engie solar assets that will be developed and constructed by Engie over the next couple of years. No deal value was discosed by either firm. Although Engie had indicated that it expected the deal to help it reduce debt by over $400 million, (Rs 2900 crores).

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The investment from EIYP is a good marker for the solar sector to establish itself as a dependable source for steady, long term income, which would help attract more long term investors to the sector, particularly pension funds and sovereign funds, including for debt.