UNOPS S3i, IFU & ACME Co-invest in 250 MW Solar Park in Rajasthan

An announcement revealed yesterday that 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 MW solar project in Rajasthan.

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).

Once in operation, the solar plant is expected to provide clean electricity to the equivalent of 500,000 households. It is also estimated that the project will create some 225 jobs in the construction phase, and 75 jobs while the plant is in operation. Myra structured the transaction.

In addition to its equity investment, S3i will be playing an operational role in the project with a major emphasis on social impact measurement. The total value of the project is the equivalent of just under US $200 million, of which about a quarter is financed through the medium of equity contributions by three co investors with UNOPS’ share being 10 per cent.

“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 are 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.

“We are delighted to have had this opportunity to demonstrate our commitment to the government and people of India and show that we care and are willing to take risks while the country is working so hard to combat the devastating COVID-19 pandemic.” said Vitaly Vanshelboim, UN Assistant Secretary-General and Chief Executive of Sustainable Investments in Infrastructure and Innovation (S3i).

“This is a historic partnership agreement and we are very excited to have UNOPS S3i and IFU as our partners and co-investors in India for the development of solar projects. ACME will jointly develop world-class solar plants using the experiences of our partners in social impact measurement while optimizing operations and energy generation.” said Manoj Upadhyay, Founder and Chairman, ACME Group.

It is estimated that reaching the SDGs by the year 2030 would require an additional five to seven trillion US dollars’ worth of investments. SDG goal number seven sets out the promotion of investments in energy infrastructure and clean technologies, targeting increased access to affordable, reliable, sustainable and modern energy for all.

While there’s been great improvement in access to electricity across the world, much more needs to be done to improve access to clean, safe and sustainable energy for 2.8 billion underserved people. More than 60 per cent of India’s energy is produced with fossil fuels. With the growing population and rapid urbanization further increasing demand for electricity, the Indian government has made renewable energy a high priority.