Virescent Subsidiary Acquires 25 MW Solar Project in Gujarat

The estimated cost of the acquisition is ₹1.4 billion (~$17 million)


Godawari Green Energy (GGEPL), a wholly-owned subsidiary of investment firm Kohlberg Kravis Roberts (KKR)-backed Virescent Renewable Energy Trust has acquired a 25 MW operational solar project from Samta Energy in Surendranagar district of Gujarat.

The estimated cost of the acquisition is ₹1.4 billion (~$17 million).

The project’s total revenue stood at ₹555 million (~$7 million) in 2022.

In February 2022, Virescent Renewable Energy Trust signed a share purchase agreement to  acquire 100% shareholding and management control in GGEPL for ₹6.65 billion (~$98.11 million).

Incorporated in July 2009, Godawari Green Energy operates a 50 MW concentrated solar power project (parabolic trough) in Rajasthan. It entered into a 25-year power purchase agreement with NTPC Vidyut Vyapar Nigam in January 2011 at a fixed tariff of ₹12.20 (~$0.16)/kWh. The project was commissioned in June 2013.

Samta Energy signed a power purchase agreement (PPA) with the Gujarat Urja Vikas Nigam in January 2011 for a period of 25 years. The project was commissioned in December 2011.

Virescent Renewable Energy Trust has a portfolio of 16 operational solar power projects with a cumulative capacity of 538 MW across seven Indian states.

For all 16 projects, Virescent has signed PPAs with various government offtakers for 25 years.

In 2021, the trust had acquired a 49 MW solar portfolio from five special purpose vehicles of Focal Energy for ₹3.54 billion (~$46.73 million).

Last September, Virescent Renewable Energy Trust initiated discussions to acquire about 100 MW of solar projects from Jakson Group. The portfolio comprises three operational solar power projects in Uttar Pradesh and Rajasthan. The Jakson acquisition would take Virescent’s total operation solar capacity to 600 MW and will come closer to achieving a 1.5 GW portfolio of assets over the next two-three years.

Last month, the Competition Commission of India approved a $450 million investment through the subscription of compulsorily convertible preference shares of Hero Group’s renewable arm, Hero Future Energies by Ardor Holding II, is a special purpose vehicle indirectly owned by KKR.