Adani Green Energy announced this Wednesday that it has secured the biggest deal regarding renewable energy in India. It acquired a 100% interest in SB Energy India. SB Energy has a total renewable portfolio of 5 gigawatts, spread across five states of India. The transaction is the biggest in renewables sector in India, yet.
Firstly, Adani Green Energy bought SB Energy from SBG, which holds 80% interest of the company; and from Bharti Group, which holds 20% interest of the company. Therefore, the enterprise value is approximately of USD$3,5 billion.
Secondly, the acquired portfolio consists of large-scale utility assets with 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW) and 7% wind capacity (324 MW). Overall, it comprises of 1,400 MW operational solar power capacity and a further 3,554 MW is under construction.
Thirdly, according to the company’s statement, all of these assets have 25-year power purchase agreements with sovereign rated counterparties such as Solar Energy Corporation of India Ltd. Indeed, all of the operating assets forming part of the portfolio are primarily solar park-based projects; have also been built following best in class practices.
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Adani Green Energy in path to become largest renewable player in the world
Moreover, after the acquisition, Adani Green Power will achieve total renewable power capacity of 24,3 GW; and an operating renewable capacity of 4,9 GW; which demonstrates the company’s commitment in being a leader in the renewable energy industry around the world.
On the other hand, the closing of the transaction is still subject to customary approvals and conditions. Regarding the acquisition, Gautam Adani, Chairman of Adani Group, said. “This acquisition is another step towards the vision we stated in January 2020; wherein we laid out our plans to become the world’s largest solar player by 2025; and thereafter the world’s largest renewable company by 2030.”
He also remarked. “The renewable energy platform that we are building will lay the foundation for attracting several other global industries that are increasingly looking to reduce their carbon footprint; as well as lay the foundation for opening up adjacent platforms that include Hydrogen and Storage.”
Finally, he concluded. “The quality of assets that SoftBank and the Bharti Group have built are excellent; I compliment their efforts to support India’s renewable energy transition. We are also proud to take their legacy forward.”