Denmark-based IFU and UN’s S3i Acquired Minority Stakes In Acme Solar 250MW Project

Denmark’s state-owned fund IFU and United Nations Office for Project Services S3i have acquired 39% and 10% stake respectively in Acme Solar Holdings Ltd’s 250 megawatts (MW) solar project in Rajasthan, the companies announced, reported Mint. Acme Solar, a leading Solar IPP in India, holds the majority 51% stake in the project, which has a total investment requirement of euro 150 million and was awarded by state-run Solar Energy Corporation of India Ltd (SECI).

“ACME has signed a landmark shareholders agreement with UNOPS S3i and IFU for developing a 250-megawatt solar power plant located in the Rajasthan State of India. The total value of the project is the equivalent of just under US$ 200 million, of which about a quarter are financed through equity contributions by the three co-investors,” the companies said in a joint statement.

When commissioned, the Rajasthan solar project is expected to produce 675 GWh annually and reduce CO₂ emissions by more than 500,000 tons CO₂e annually, compared to the current energy mix. It will provide electricity to the equivalent of 500,000 households under a 25-year PPA agreement with SECI. The project is estimated to create 225 direct jobs during construction and 75 permanent jobs during operation.

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“This partnership is a key milestone towards Acme’s vision for developing a portfolio of 25,000 MW of renewable energy projects which comes in line with India’s plans to achieve 4,50,000 MW of renewable energy power by 2030,” said Manoj Upadhyay, founder, and chairman of ACME Group.

“Providing clean and green power is at the forefront of global commitments to address climate change. We need an urgent transition from fossil fuels to renewable energy. UNOPS is proud to support India’s climate targets and all of the partners in this landmark renewable energy project” said Grete Faremo, UN Under-Secretary-General, and UNOPS Executive Director.

“IFU’s investment is made on behalf of the Danish SDG Investment Fund, which is backed by the Danish state, larger Danish pension funds and other private investors,” IFU said in a separate statement.

“UNOPS, a UN organization, will co-invest through Sustainable Investments in Infrastructure and Innovation (S3i), set up to deliver both social and environmental impact,” the IFU statement added.

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India is running the world’s largest clean energy program to achieve 175 GW of renewable capacity, including 100GW of solar power by 2022. According to the Central Electricity Authority, by 2030, the country’s power requirement would be 817GW, more than half of which would be clean energy, and 280GW would be from solar energy alone.

The deal also marks the first investment under the India-Denmark green strategic partnership signed in 2020. IFU will hold 39% ownership in the project, and its investment is made on behalf of the Danish SDG Investment Fund, which is backed by the Danish state, larger Danish pension funds and other private investors.