The acquisition of the project is at an enterprise valuation of Rs 219 crore
Renewable energy giant Adani Green Energy Ltd has announced that it will acquire a 40 MW operating solar project from Essel Green Energy.
The closing of the transaction is subject to customary conditions. The acquisition of the project is at an enterprise valuation of Rs 219 crore.
Adani Green Energy Ltd’s wholly-owned subsidiary Adani Renewable Energy (MH) Limited (AREMHL) has signed definitive agreements with Essel Green Energy to acquire 100 per cent economic value in an SPV that owns a 40 MW operating solar project in Odisha, a company statement said.
The project has a long-term power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) for Rs 4.235 per unit, with remaining PPA life of about 22 years.
With this acquisition, AGEL will achieve a total renewable capacity of 19.8 GW. The total portfolio includes 5.4 GW operational assets, 5.7 GW assets under construction and 8.7 GW near construction assets.
In May, AGEL bought Japan’s SoftBank Group Corp’s and Bharti Enterprises Ltd owned solar power producer SB Energy India for an enterprise value of $3.5 billion. SB Energy India has a total renewable portfolio of 4.954 GW spread across four states in India.
Vneet Jaain, Managing Director and CEO of Adani Green Energy, said, “With the acquisition of this project in Odisha, AGEL will now have its footprint across 12 states in India. We are on an expansion path that will make us the world’s largest renewable player by 2030.”
Recently, Adani Group’s chairman Gautam Adani announced that his conglomerate is going to invest $20 billion in the renewable energy segment, component manufacturing, and also distribution and transmission.
Adani plans to invest the amount over a period of 10 years and also produce world’s most economical green electron.