Adani Green to buy SB Energy’s 5 GW renewable portfolio in India

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Adani Green Energy Limited (AGEL) today signed an agreement to acquire a 100% stake in SB Energy India for approximately US$ 3.5 billion (INR 26,000 crore). The move signals the company’s commitment to becoming the leader in sustainable energy transition globally and one of the largest renewable energy platforms in the world.

As part of the deal, the developer will acquire SoftBank Group‘s 80% stake and Bharti Group’s 20% in SB Energy India. 

SB Energy India has a renewable portfolio totaling 4,954 MW across four states in India. 

“The transaction values SB Energy India at an enterprise valuation of approximately US$ 3.5 billion,” AGEL said in a media statement.

This makes it the largest acquisition in India’s renewable energy sector till date. 

The target portfolio comprises large-scale utility assets, including 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW) and 7% wind capacity (324 MW). The solar portfolio comprises 1,400 MW operational capacity and a further 3,554 MW under construction. 

All the projects being acquired benefit from 25-year power purchase agreements with sovereign rated counterparties such as Solar Energy Corporation of India (SECI), NTPC, and NHPC Limited.

“The operating assets forming part of the portfolio are primarily solar park based projects and have been built following best-in-class governance, project development, construction, and operations and maintenance practices, resulting in this being one of the highest quality renewable portfolios in the country,” read AGEL statement.

The acquisition enables AGEL to achieve its ‘25 GW by 2025’ renewable target four years ahead of the timeline. With the addition, the company will reach a total renewable capacity of 24.3 GW, including 4.9 GW of operational projects. 

The closing of the transaction is subject to customary approvals and conditions.

Gautam Adani, Chairman, 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.”

“India, without any doubt, has been one of the few nations that have accelerated its global commitment towards climate change, and we intend to do our part to execute on the promises made. 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). We are well on our way to achieve our stated solar portfolio targets four years before the deadline we set for ourselves. The quality of assets that SoftBank and the Bharti Group have built is excellent, and I compliment their efforts to support India’s renewable energy transition. We are proud to take their legacy forward.”

SB Energy India was established in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy. 

Masayoshi Son, Representative Director, Corporate Officer, Chairman and CEO of SoftBank Group Corp., said: “As SBG continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth.”

Sunil Bharti Mittal, Chairman, Bharti Enterprises, added: “SB Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India. Adani Group has an outstanding track record of building a green energy powerhouse which will get further acceleration with the combination of SB Energy into its fold.”

 

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