Three bidders are in the final stages of acquiring solar projects totaling 350 megawatts (MW) from O2 Power, which is backed by Singapore’s Temasek and European asset manager EQT. The bidders include Gentari Sdn Bhd, a unit of Malaysia’s Petroliam Nasional Bhd; Sekura Energy Ltd, a subsidiary of Edelweiss Infrastructure Yield Plus Fund; and private equity firm Actis Llp.
The transaction, with an equity value of $50 million and an enterprise value of $200 million, is being managed by EY. These three bidders were shortlisted from a dozen non-binding offers.
Gentari, Edelweiss, and Actis are actively seeking opportunities in India’s green economy and are also competing to purchase 185MW solar projects from Finnish state-run power utility Fortum Oyj. Actis, which only invests in emerging markets, has committed $2.1 billion to India so far. They are also vying for Macquarie Asset Management’s Green Investment Group platform, Vibrant Energy, along with India’s National Investment and Infrastructure Fund.
O2 Power, founded by former ReNew Power executives, is a renewable energy platform targeting a 5 gigawatt (GW) portfolio over the next five years. They already have a portfolio of 2.6GW, with 600MW already commissioned.
India has seen significant interest in its green energy sector due to its growing power demand. The country recently reached a new record of 239.9GW in power demand, surpassing projections. India currently has an installed renewable energy capacity of 172GW, with an additional 128GW under development or bid out.
India is leveraging its green economy to form global energy alliances. For example, India and Saudi Arabia signed an agreement to link their power grids through a subsea cable to improve grid security. India is also using the International Solar Alliance (ISA) to share its solar power expertise with other countries and is championing the One Sun One World One Grid (OSOWOG) initiative to transfer solar power across regions.
In conclusion, three bidders are in the final round of acquiring solar projects in India. The country’s green energy sector continues to attract interest due to increasing power demand, with opportunities for global energy alliances and the promotion of renewable energy expertise.
Sources: Mint (no URLs provided)