Home » Finance » IFC To Invest $55M In Solar Power Company sponsored by SunEdison LLC

IFC To Invest $55M In Solar Power Company sponsored by SunEdison LLC

SunEdison is implementing solar projects in Gujarat (25 MW), Rajasthan (5 MW) and Uttar Pradesh (1 MW), and hopes to be active in many other States, as and when they come out with their solar policies. Apart from this SunEdison is providing various services including design and engineering services to companies like Azure Power in one of their projects and is  playing an important role in number of other projects under discussion.

Further, a couple of  months ago, Baltimore, US-based SunEdison  announced its intention to invest $100 million in solar projects in India and the company’s President, Mr Carlos Domenech, had said that many private equity investors are interested in partnering SunEdison and a deal could be struck in about three months.

SunEdison has been taking a leadership role in this space and is aggressively involved in a  number of the JNNSM projects that are now looking for assistance in design, execution and finance after having secured the big and now having to adhere to rather stringent time lines.

According to reports, the International Finance Corporation (IFC) is looking to invest $55 million to pick 15 per cent equity stake in an upcoming solar power development company which is sponsored by US-based SunEdison LLC. It has a pipeline of grid-tied solar PV projects in India and Thailand, with plans for expansion across South and South-East Asia, besides sub-Saharan Africa. The deal will value the firm at around $366 million.

IFC may also provide debt – $20 million for the Indian project and $26 million for the four small Thai projects. The expected total project cost will be approximately in the range of $300-$450 million for the five grid-tied projects being debt-financed by IFC.

In addition, IFC is also considering supporting these projects with financing from the IFC Earth Fund, a platform of the GEF Earth Fund, and the Clean Technology Fund (a fund under the World Bank-administered Climate Investment Funds) for the Thai projects, it has disclosed.

In India, the Alpha project 25 MW facility will be housed in the newly announced Gujarat Solar Park (being built by Gujarat Power Corporation Ltd), located near the Charanka village in Santalpur Taluka, Patan district. The four Thai projects are for a combined capacity of 26 MW across three locations.

IFC expects the deal to bring a demonstration effect of early non-recourse financing of solar PV in India, Thailand and other regional markets.

The proposed firm sponsored by SunEdison LLC (North America’s largest solar energy services provider), will be based in Singapore with operational teams in Chennai, Bangkok and elsewhere. All its projects will be built by SunEdison’s EPC company and later, operations and maintenance will be provided by SunEdison O&M Services arm.

Leave a Reply

Your email address will not be published. Required fields are marked *


Scroll To Top