Adani Green Energy Limited (AGEL) is to acquire a 100% interest in SB Energy India from SBG (80%) and Bharti Group (20%).
SB Energy India has a total renewable portfolio of 4954MW spread across four states in India.
The transaction marks the largest acquisition in the renewable energy sector in India.
The transaction values SB Energy India at an enterprise valuation of approximately USD$3.5bn (€2.86bn).
The target portfolio consists large scale utility assets with 84% solar capacity (4180MW), 9% wind-solar hybrid capacity (450MW) and 7% wind capacity (324 MW).
It comprises 1400MW of operational solar power capacity and a further 3554MW is under construction.
All projects have 25-year PPAs with sovereign rated counterparties such as Solar Energy Corporation of India Ltd. (SECI), NTPC Limited 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, according to AGEL.
With this acquisition, AGEL will achieve total renewable capacity of 24.3GW and operating renewable capacity of 4.9GW.
This acquisition demonstrates AGEL’s intent to be the leader in sustainable energy transition globally and makes it one of the largest renewable energy platforms in the world.
The closing of the transaction is subject to customary approvals and conditions.
Adani Group chairman Gautam Adani 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 has 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 are excellent and I compliment their efforts to support India’s renewable energy transition.
“We are proud to take their legacy forward.”