A significant development to further strengthen India’s renewable energy industry saw the NTPC Green Energy and ONGC Green Energy joint venture emerge as the highest bidder for Ayana Renewable Power above JSW Energy, with an offer of $650 million.
Ayana Renewable Power, backed by the National Investment and Infrastructure Fund, British International Investment Fund, and Green Growth Equity Fund, currently operates 1,600 MW of solar and wind energy projects in India. It has another 2,500 MW under construction, making it an attractive acquisition for green energy leaders.
The earlier JV of the year between NTPC-ONGC plans to acquire the whole 100% stake in Ayana Renewable Power. NTPC Green Energy and ONGC Green Energy are subsidiaries of the two leading state-owned enterprises in India, namely NTPC Ltd. and Oil and Natural Gas Corporation (ONGC), respectively. The acquisition is well within India’s commitment to reaching 500 GW of clean energy capacity by 2030.
The major Indian players in the space of power are increasingly increasing their share of the renewable energy portfolio. NTPC Green Energy puts a value of around $10.8 billion and will seek fundraising in its Initial Public Offering, scheduled for November 19–22. The IPO proceeds will pay off the debt of its subsidiary, NTPC Renewable Energy. The ONGC Green Energy will be listed in this fiscal year.
Ayana Renewable Power has been attracting competitive bids of strategic importance associated with growth as well as operational projects. Meanwhile, JSW Energy also participated in the bidding process, wherein the NTPC-ONGC JV outpaced it in this development. Representatives of NTPC, ONGC, and Ayana Renewable Power have declined to comment on the development.
This acquisition reaffirms India’s growing shift towards renewable energy and aspirations to be a global clean energy leader. By integrating their efforts, NTPC and ONGC will be taking a step forward to vie for dominance in the competitive and rapidly changing marketplace.
Conclusion:
The acquisition of Ayana Renewable Power by the NTPC-ONGC JV highlights the growing importance that is being given to renewable energy in the country. As the country draws closer to the targets placed for green energy utilization, strategic partnerships of this nature portend a sound and sustainable future for the sector.
Source: Reuters