Singapore fund and British developer eye stake in UK government’s south Asian renewables company

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Mumbai-based investment fund EverSource Capital is preparing to take a $100 million slice of U.K. government-funded developer Ayana Renewable Power, according to a report in The Economic Times.

EverSource is a JV between the Singapore-based Everstone Group private equity fund and U.K. renewables developer Lightsource BP – which rebranded itself last year after oil and gas giant BP acquired a 43% stake in it.

The Mumbai fund is reportedly ready to acquire all of the $100 million stake being offered in Ayana by CDC Group, the U.K. government owned development finance institution which, until now, has fully funded Ayana. CDC formed the company to develop wind and solar power plants in the most polluted cities in India and its south Asian neighbors.

By 2022, Ayana aims to add at least 2 GW of renewable power capacity in countries including India, Bangladesh, Nepal, Bhutan, Sri Lanka and Myanmar. It is developing some 500 MW of capacity in two solar parks in Andhra Pradesh – at Anantapur, with a project due to begin commercial operation in August; and at Kadapa, where commercial operation will start in June next year.

Ayana has entered into a 25-year power purchase agreement for the Anantapur plant with NTPC and signed a deal with the Solar Energy Corporation of India for the Kadapa plant. “The long-term nature of PPAs provides revenue visibility for Ayana,” stated a recent report by credit rating agency ICRA, quoted in The Economic Times. “Moreover, the new PPAs include provisions to compensate developers in case of constraints in grid availability, transmission infrastructure and backdowns, which is a positive for power producers.”

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