A Spain-based energy industry company Fotowatio Renewable Ventures is reportedly holding talks for the spinoff of its 100 MW solar project in India. According to sources familiar with the matter, the deal could be worth between INR 500-600 crores and will include potential investors such as Macquarie Infrastructure & Real Assets (MIRA), Edelweiss Infrastructure Yield Plus Fund, and a green infra joint venture between PE fund Everstone Group & UK-based Lightsource BP’s Eversource Capital.

According to reports, FRV, a unit of Abdul Latif Jameel Energy (based in Saudi Arabia), had secured the solar project in an auction by SECI (Solar Energy Corporation of India) in the year 2016. The solar farm, touted to be FRV’s first Indian project, will be developed within the Ananthapuramu Ultra Mega Solar Park in the state of Andhra Pradesh.

For the record, the Gulf region conglomerate – Abdul Latif Jameel Group acquired FRV in April 2015, with an intention to support the MENAT region’s adoption of renewable energy and further push itself to becoming a global independent power producer.

Under the 2016 National Solar Mission program, SECI awarded FRV with a 100 MW power purchase agreement. The new solar plant upon completion is estimated to meet the electrical needs of approximately 35,000 average homes and eliminate over 190,000 tons of carbon dioxide emissions per year.

If industry experts are to be believed, India is a major investment grade country and has one of the best solar power resources in the world. However, global renewable energy financiers require a scale as a result of which they tend to shuffle their portfolio to exit the markets that are hard to grow in. This industry is poised to witness many exits chiefly because the buyers look for assets with better tariffs for the same growth reasons.

It has been reported that, similar to FRV, several other foreign entities are in the process to exit their solar businesses in India.