AGEL Completes Acquisition of SB Energy, Plans 3x Solar Capacity Expansion in 4 Years

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The value-accretive acquisition boosts AGEL’s operational portfolio to 5.4 GW and its overall portfolio to 19.8 GW

Gautam Adani-led Adani Group’s renewable energy unit Adani Green Energy Ltd (AGEL) has announced that it has completed the acquisition of SB Energy Holdings Ltd (SB Energy India) in an all-cash deal at an enterprise valuation of USD 3.5 Billion (Rs 26,000 crore), the largest such acquisition in the renewable energy sector in India

SB Energy India, which was earlier an 80:20 joint venture between Japan-based SoftBank Group Corp and Bharti Group, is now a 100 per cent subsidiary of AGEL.

SB Energy India has 5 GW renewable assets across four states in India through its SPVs. The portfolio holds 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 of the portfolio (4,180 MW), wind-solar hybrid capacity accounts for 9 per cent (450 MW) and wind capacity accounts for 7 per cent (324 MW).

“The addition of these high-quality large utility-scale assets from SB Energy India demonstrates Adani Green Energy’s intent to accelerate India’s efforts to transition towards a carbon-neutral future. Our renewable energy foundations will enable an entire ecosystem of new industries that can be expected to catalyse job creation in multiple sectors,” said Vneet S. Jaain, MD & CEO, AGEL.

Capacity Expansion Plans

The value-accretive acquisition boosts AGEL’s operational portfolio to 5.4 GW and its overall portfolio to 19.8 GW implying a 4 times growth locked-in.

Speaking at the inaugural session of the ‘TiE Sustainability Summit 2021’ themed, “Where entrepreneurship meets sustainability”, Gautam Adani said over the next decade, his group would invest over USD 20 billion in renewable energy generation, with plans to triple its solar power generation capacity in the next four years.

“While these scenarios emerge, the Adani Group is not sitting still. We are tripling our solar power generation capacity over the next four years. This is a rate of growth currently unmatched by any other company anywhere on the planet,” he said in his address.

The overall investments, both organic and inorganic, across the entire green energy value chain would range between USD 50 and USD 70 billion. This would include investments with potential partners for electrolyzer manufacturing, backward integrations to secure the supply chain for solar and wind generation businesses, and AI-based industrial cloud platforms, he said.

“Our renewables portfolio has reached the initial target of 25 GW a full four years ahead of schedule. Today, we are already the world’s largest solar power player. This puts us well on track to be the world’s largest renewable power generating company by 2030,” Adani further said.

AGEL recently announced that it will acquire a 40 megawatt (MW) operational solar project from Essel Green at an enterprise value of Rs219 crore.

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