Actis, the sustainable infrastructure investor, has made a significant move in the Indian renewable energy sector by acquiring the complete stake in Stride Climate Investments from a fund managed by Macquarie Asset Management. This deal, though undisclosed in value, adds a substantial 371MW (414MWp) portfolio of operating solar photovoltaic (PV) assets to Actis’ growing renewable energy portfolio in India. These assets are spread across 21 projects in seven states, with a significant concentration in Gujarat.
The acquisition is a strategic fit for Actis, aligning with its long-life infrastructure investment approach. Adrian Mucalov, Head of Long Life Infrastructure at Actis, emphasized the appeal of Stride’s 10-year operating history, strong cash generation, and low existing leverage. “The business has a 10-year operating history, compelling cash generation and low existing leverage,” Mucalov stated. “We believe Stride offers strong prospects to deliver cash yields to investors while also being in a dynamic, rapidly growing market.”
Stride’s portfolio is particularly attractive due to its long-term pay-as-produced power purchase agreements (PPAs) with a diversified pool of off-takers, including central and state governments, as well as private sector entities. This diversification mitigates risk and ensures a steady revenue stream, which is crucial for long-term investment strategies.
Actis’ acquisition of Stride is not an isolated move but part of a broader strategy to strengthen its presence in the Indian renewable energy sector. The firm has already invested over $7.1 billion in Asia, with a significant portion dedicated to renewable energy projects. This acquisition marks Stride as Actis’ third energy generation platform in India, joining BluPine Energy and Athena Renewables. Previously, Actis successfully invested in Ostro Energy and Sprng Energy, further cementing its expertise and experience in the Indian market.
Abhishek Bansal, Partner at Actis Energy Infrastructure, highlighted the rapid growth of the Indian economy and its accelerating energy transition. “The Indian economy is continuing to grow rapidly, and its energy transition is accelerating apace, with the government aiming to secure 50% of the country’s electricity from renewables by 2030,” Bansal said. This ambitious goal creates a fertile ground for investors like Actis, who can drive efficiency and create value in the market.
The acquisition of Stride is likely to spur further developments in the sector. It signals Actis’ confidence in the Indian renewable energy market and could encourage other investors to follow suit. The deal also underscores the importance of long-term PPAs and diversified off-taker pools in attracting investment. As Actis continues to expand its renewable energy portfolio in India, it will be interesting to see how this move shapes the competitive landscape and drives innovation in the sector.
Moreover, Actis’ recent strategic partnership in the Philippines, where it invested $600 million in the Terra Solar project, demonstrates its commitment to expanding its renewable energy footprint in Asia. This move, coupled with the acquisition of Stride, positions Actis as a key player in the region’s energy transition. The firm’s expertise in driving efficiency and creating value will be crucial in navigating the challenges and opportunities that lie ahead in the rapidly evolving renewable energy sector.
