Piramal Enterprises Limited through its Structured Investment Group and Dutch pension fund asset manager APG Asset Management will invest US$132 million to power the Essel Infrastructure’s Solar IPP platform across India.
Essel Green Energy Private Ltd, the solar platform vehicle of Essel Infraprojects Ltd, currently owns 160 MWs of Solar IPP assets in 4 states of India, of which, 110 MW is operational and 50 MW is currently under execution.
With this investment, Essel Group will propel its solar power agenda across India. Ernst and Young India was the financial advisor to the Essel Group for the transaction.
Essel Infraprojects Limited (EIL) an enterprise of Dr. Subash Chandra led Essel Group; plans to ramp up its solar power capacity to 1,000 MW in the next 2-3 years. Essel Green Energy has been the pioneer in the solar sector in India with the first 50 MW project in Uttar Pradesh to its credit.
Jayesh Desai, Co-head, Structured Investments Group- Piramal Enterprises Ltd, stated:
"The strategic alliance formed in 2014 between PEL and APG committed US$1 Billion for investments in infrastructure companies and we see great potential in green energy as a segment. Given the Government's focus on non-conventional energy and Essel Infra’s strong track-record, we are confident that the investment will yield good results"
Hans-Martin Aerts, Head of Infrastructure Investments Asia Pacific at APG said:
"We view India as an attractive renewable energy market with favorable growth dynamics. APG is a strong supporter of increased investments in sustainable energy generation. We are pleased to support Essel Green Energy in growing its portfolio of solar projects and to contribute to meeting India’s renewable energy targets."
Essel Infraprojects Limited CEO & Whole Time Director, Mr. Ashok Agarwal, said he is excited at the expansion opportunity this investment represents:
"Essel Group has ambitious plans to expand its foot-print in the Green Energy field. With the impetus provided by the Central Government to solar energy we are upbeat about the outlook for the industry. APG and Piramal Enterprise’s trust in us, demonstrated through this investment makes us even more confident of powering the development agenda of an India on the move."
India, with current electricity grid capacity of less than 300 gigawatts, aims to increase its solar installations from below 5GW now to 100GW by 2022 — more than double the present solar capacity of China and Germany, the two biggest solar nations.
Recently Prime Minister Narendra Modi has championed solar power and helped launch a global solar alliance at the Paris climate summit to mobilise an attention-grabbing $1tn of funds worldwide by 2030.