Macquarie eyes Canadian Solar’s India assets

MUMBAI: Sydney-based infrastructure asset management group Macquarie is looking to acquire the solar power assets of Canadian Solar in India, said two people close to the development, requesting anonymity.

Macquarie Group’s decision comes at a time when access to funds for renewable energy is drying up in India.

Ontario-based Canadian Solar is a global energy provider with subsidiaries in 20 countries. It is a leading manufacturer of solar PV modules. It also operates as an engineering, procurement and construction player, besides being a solar park developer. In India, Canadian Solar has a portfolio of 160 megawatts (MW), and has installed over 1 gigawatts (GW) of modules, including a 25 MW solar farm in Bikaner, Rajasthan, and a 35 MW project in Bagalkot, Karnataka. Canadian Solar also has a joint venture with domestic wind power firm Suzlon to execute solar projects in Telangana.

Macquarie may have to shell out ₹1,000 crore for these assets at a valuation of ₹6-6.5 crore for each MW, said one of the people mentioned above.

A spokesperson for Macquarie declined to comment while Canadian Solar did not respond to an email seeking com- ment. The Indian solar power sector is facing headwinds in terms of a safeguard duty of 25% and a depreciating rupee, pushing up costs for local developers who import a bulk of the solar modules. The last big deal in the renewable energy sector was in April when Renew Power announced its plan to buy Ostro Energy for ₹10,800 crore. Since then, appetite for large deals between developers and financial investors has weakened.