DIF Infrastructure adds 10 projects to solar portfolio

DIF Infrastructure II has acquired 85 percent of 10 solar projects in southern France with an installed capacity of 20 megawatts. The fund has already achieved financial close on five of the projects which are currently under construction.

DIF Infrastructure’s DIF II fund has acquired 85 percent of GreenYellow, a renewable energy subsidiary of food retailer Casino Group that owns 10 solar photovoltaic (PV) projects to be constructed in southern France, DIF said in a statement.

No financials were disclosed but GreenYellow will retain the 15 percent stake not bought by DIF.

DIF: going solar.

The 10 projects have a total capacity of 20 megawatts. Five have already reached financial close and are under construction. Financial close and construction for the remaining five is expected by November.

The projects will be financed with non-recourse debt financing provided by three French banks: Caisse d’Epargne Provence-Alpes-Corse, Oséo and Crédit Coopératif, DIF said in a statement.

The power generated from the plants will be sold to Paris-based electricity company EDF as per the 20-year feed-in tariff policy for rooftop solar PV projects under which national electric grid utilities like EDF must buy renewable electricity from all plants generating electricity from renewable sources.

The current acquisition adds another 20 megawatts of solar power to DIF’s portfolio. In July this year, the firm acquired an 11.7-megawatt-peak (MWp) tranche of a solar project in France from EDF Energies Nouvelles, a French renewable energy corporation. In June, DIF acquired three wind projects – an onshore wind farm with a capacity of 8 megawatts in Germany and two wind projects in France with capacities of 20 megawatts and 9.2 megawatts.  

Earlier this month, DIF closed its second infrastructure and renewable fund on €571 million, beating its original target of €500 million after 20 months of fundraising.

Established in 2005, DIF currently manages a portfolio of €500 million of PPP/PFI and renewable energy assets.