More multi-billion dollar renewable energy deals in India

JSW Group, one of India’s largest conglomerates, has announced plans to acquire Indian renewables company Mytrah Energy for $1.32 billion. This is hot on the heels of Shell completing its $1.55 billion acquisition of Indian renewable energy developer Sprng Energy from Actis Solenergi earlier this week.

“Established in 2009, Mytrah Energy’s 1.75 GW portfolio comprises 17 wind energy and 21 ground-monitored solar assets spread across nine states, with 1.33 GW of onshore wind and 422 MW of solar assets in operation. The assets are contracted primarily on the regulated market and have an average remaining tenor of 17.7 years, with an average tariff of $0.061/kWh. JSW Energy Ltd reported that the portfolio has an EBITDA of $207 million over the last-twelve-months (LTM). Adani Green Energy Ltd., Torrent Power, ReNew Power, Ayana Renewable Power, Virescent Infrastructure, O2 Power, Edelweiss, Brookfield Renewable and CPPIB had also expressed interest in acquiring Mytrah. The deal marks the third largest transaction, by value, for renewable generating assets in India,” reported Enerdatics, a research company.

“The recent move JSW Group mirrors similar ones taken by peers TATA Power and Adani Green, other large-cap industrial conglomerates operating in India that have recently stepped up their renewables activity. With this deal, JSW’s operational and under-construction power generation capacity reaches 9.1 GW, 65% of which is renewables-based. The company targets to reach 20 GW of generation capacity by 2030, with the share of renewable electricity increasing to 85%,” noted Enerdatics.

“India has emerged as the most attractive market in Asia for renewable energy investments – since 2017. The country accounts for a staggering $21.2 billion of transactions for generation assets, representing 40% of the cumulative deal value in the continent. The country also accounts for 30% of Asia’s deal volume during the same period. While majority of the renewables investments in India are led by large integrated power companies and industrial conglomerates, India showcases the maximum growth in penetration of private equity/venture capital, in Asia, during the last three years. Macquarie Group, BlackRock, Actis, Global Infrastructure Partners (GIP) and KKR & Co. Inc. are some of the firms that have made major moves in the country during the period,” added the firm.

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