Adani Green bought this company, the biggest deal in Indian renewable energy sector
Adani Green Energy Limited (AGEL), an Adani Group company, on Wednesday said it has acquired SB Energy India from Softbank of Japan and Bharti Group of India to add 4,954 MW to its renewable energy portfolio. This is the biggest deal in India’s renewable energy sector. The deal is worth about $3.5 billion (Rs 24,000 crore).
The target portfolio includes large-scale utility assets with 84 percent solar capacity (4,180 MW), nine percent wind-solar hybrid capacity (450 MW) and seven percent wind capacity (324 MW). The portfolio consists of 1,400 MW of operational solar power capacity and another 3,554 MW of solar power capacity which is currently under construction. All projects include 25-year power purchase agreements with sovereign rated counterparts such as Solar Energy Corporation of India Limited (SECI), NTPC Limited and NHPC Limited.
The operational assets that form part of the portfolio are primarily solar park based projects. With this deal, Adani Green Energy Limited will achieve a total renewable capacity of 24.3 GW (1) and an operational renewable capacity of 4.9 GW.
SB Energy will be out of the Indian market
With this deal, SB Energy will exit the Indian market. Industry sources said that SB Energy will no longer participate in any project tender in India. Executives said that SB Energy had been considering selling its portfolio for about two years. The company had asked the Indian government to provide dollar-based tariffs and large capacity, but these were not accepted.
Adani Green Energy shares got wings
Adani Green Energy shares have got wings due to this news. At 11.15 am, Adani Green’s stock was trading at a level of 1243.05, up 44.30 points (3.70 percent). But it closed at 1198.75 on the previous trading day. Earlier, for two consecutive days, an upper circuit of five percent was also put in it. Currently, the company has a market capitalization of Rs 1.95 lakh crore.
This is the company’s plan
In this context, Chairman of the Adani Group Gautam Adani said in a statement that, ‘This acquisition is another step towards the vision we set out in January 2020, in which we have become the world’s largest solar company by 2025 and thereafter become the world’s largest renewable company by 2030. We can achieve our declared target only four years before the deadline.’
Before this, the biggest deal in the region was in 2016.
The biggest deal for India’s renewable energy sector was in 2016, when Tata Power bought Welspun Energy’s renewable energy assets for about Rs 10,000 crore.
