Latest Engie Solar News
Jun 25, 2019
June 25th, 2019 by Saurabh Engie Solar, the French utility’s Indian subsidiary, has joined a growing list of Indian project developers looking to sell projects. Image credit: Carl Attard | Pexels, free to use Indian business daily Mint has reported that Engie Solar is in discussion with the Global Infrastructure Partners (GIP) to sell solar power projects of 1.1 gigawatt capacity, including 740 megawatts of operational capacity. Engie had reportedly discussed the sale with investment firms Actis and Edelweiss Infrastructure Yield Plus Fund. Engie has been a recent, but now a regular, participant in solar power auctions in the central and state-level auctions. The company has also been a participant in the national and state-level wind energy auctions and has secured rights to develop 480-megawatt wind energy capacity. Rapidly falling tariff bids and hard-to-get debt funding to finance new projects has forced several companies to consider the sale of operational assets. Some of the largest project developers in the renewable energy sector in India are reportedly planning to sell off assets to raise funds. We recently covered a story stating that several project developers have given up on IPO plans and now plan to sell operational assets to yieldcos. ReNew Power, Acme Solar Holdings, and Mytrah Energy are reportedly planning to set up yieldcos by selling large operational capacity. Raising equity funding through IPOs is no more a viable option for these companies due to several teething problems in the financial sector. Despite interest rates being low lenders are unwilling to issue fresh debt funding due to the rising and persistent problem of non-performing assets. Further, these companies also face the problem of unpaid dues worth millions of dollars from several state-owned companies. Other project developers like Mahindra Susten , PTC India and Continuum Wind Energy are also looking to sell their solar and wind energy portfolios.