Adani Green Energy completes acquisition of SB Energy India

SB Energy India has a total renewable portfolio of 5 gigawatts (GW) spread across four states in India.

“Adani Green Energy Limited (AGEL), the world’s largest solar power developer, has successfully completed the acquisition of SB Energy Holdings Limited (SB Energy India) for which definitive agreements were signed on 18 May 2021.” said.

“The portfolio has 1,700 MW of operational renewable assets, 2,554 MW of assets under construction and 700 MW of assets near construction. Solar capacity accounts for 84 per cent (4,180 MW), wind-solar hybrid capacity at 9% (450 MW) and wind capacity 7% (324 MW) in the portfolio, the statement said.

AGEL recently raised $750 million through green bonds to fund equity for its under-construction projects. There is a growing interest in India’s green economy. Royal Dutch Shell is in talks with state-run Convergence Energy Services Ltd (CESL) to invest $500 million in its decentralized solar business, as reported by Mint on Monday.

“The value addition acquisition brings AGEL’s operational portfolio to 5.4 GW and the overall portfolio to 19.8 GW,” the statement said.

AGEL recently announced that it will acquire a 40 megawatt (MW) operational solar project from Essel Green at an enterprise value of Rs 219 crore.

“With this deal, SB Energy India is now a 100% subsidiary of AGEL. Earlier, it was an 80:20 joint venture between Japan-based SoftBank Group Corp and Bharti Group. The transaction would cost SB Energy India USD 3.5 billion. (~Rs 26,000 crore) and is the largest acquisition in the renewable energy sector in India.”

France’s Total has invested $2.5 billion to acquire a 50% stake in AGEL’s 2.35GW of operating solar assets and a 20% stake in AGEL. Adani-Total JV plans to commission 25GW by 2025. This comes in the backdrop of India’s all-time record high of 43.1GW of solar and wind generation on July 27. India has also crossed the 100 GW milestone of installed renewable energy capacity.

“Just last week, Adani Group Chairman Gautam Adani announced that the group will invest more than $20 billion in renewable energy generation over the next 10 years,” the statement said.

India’s installed renewable energy capacity is 147.05 GW, which includes 46.37 GW of hydroelectric projects. The country has installed solar and wind power capacity of 100.68 GW, with India’s solar and wind power hitting an all-time high of 43.1 GW on July 27. India has reached 38.5% of its installed power capacity from non-fossil fuels and this will reach 66% by 2030 as per the government.