Actis’ BluPine Energy Buys 404 MW of Solar Power Assets from Atha

Delhi-based renewable energy and storage solution provider company, that is 100% backed by global investment firm Actis Llp, BluPine Energy has purchased 404 MW of solar power assets from Atha Group, a private equity corporation headquartered in London.

The enterprise value of the solar assets owned by Atha in this transaction is close to Rs. 2,100 crores.

The announcement comes against the backdrop of Actis Llp winning the bid for the acquisition of Atha Group’s solar power projects in August. The sale purchase agreement was signed for an equity value of around $100 million. This occurs after Actis sold Shell Plc, a major energy company, its Indian renewable energy platform Sprng Energy for an enterprise value of $1.55 billion.

“Atha Group’s 404 MWp functioning pan-India solar portfolio has been acquired by BluPine Energy, a renewable wind and solar power producing and storage company. By aiming for 4 GW of portfolio capacity over the next 4 to 5 years, BluPine would be able to help India’s energy transition thanks to the acquisition,” Actis said in a statement.

Along with commercial and industrial developments, Blupine Energy Pvt. Ltd develops grid-connected solar and wind power parks. The commercial and industrial sector has been luring investors who intend to provide power to both captive consumers in India who favor such suppliers rather than relying on a more expensive electrical grid as well as investors who seek to supply power to third parties.

According to the release, “Actis has agreed to invest up to US$800 million in BluPine through Actis’ Energy 5 Fund, which represents US$6 billion of investable money and is targeted at investing in global energy transition possibilities.”

Kotak Investment Banking and Avendus Capital served as consultants for BluPine and Atha Group, respectively. Nine companies, including Torrent Power, Ayana Renewable Power, Sembcorp Industries, and Actis, had indicated an interest in buying Atha’s solar assets. Actis ultimately offered the winning offer while Bengaluru’s Ayana Renewable Power persisted in the competition.

According to the statement, “Actis has built two leading Indian renewable IPPs, Ostro Energy and Sprng Energy, which were both sold to key strategic players and became marquee transactions in the industry.”

After selling Ostro Energy to ReNew Power Ventures for $1.5 billion in 2018, Actis launched its third sustainable energy company in India with Blupine Energy. Actis manages $15 billion in assets, has invested in 70 green energy projects totaling 12 GW of capacity around the world, and is aiming for an additional 12.5 GW of capacity. Actis, which solely invests in emerging nations, has so far financed the energy, real estate, and financial services industries in India.

“India must be able to meet its population’s electricity needs because energy demand is rising by 5-6% annually. We’re committed to developing a large-scale renewable energy infrastructure that will be an important component of India’s journey toward Net Zero by drawing on our experience in developing and running Ostro Energy and Sprng Energy. With a primary focus on sustainability and good effect, BluPine Energy will develop wind, solar, and storage technologies that offer clean, dependable power throughout India,” said Sanjiv Aggarwal, Partner, Energy Infrastructure at Actis.