ONGPL Acquires Ayana Renewable Power For $2.3B

ONGC NTPC Green Private Limited (ONGPL) has made a major step in the renewable space with the INR 195 billion ($2.3 billion) acquisition of Ayana Renewable Power. The deal represents the company's maiden strategic deal and paves the way for a stepped-up growth in India's burgeoning renewable energy space. The deal fits in with the country's ambitious plans to achieve 500 GW renewable capacity by 2030 and become Net-Zero by 2070.

ONGPL, an equally owned joint venture between ONGC Green Limited (OGL) and NTPC Green Energy Limited (NGEL), has signed a Share Purchase Agreement (SPA) to purchase 100% of Ayana Renewable Power Private Limited. This acquisition not only positions ONGPL nearer to its renewable energy goals but also strengthens its foothold in an industry that is growing rapidly in tandem with India's environmental aspirations. The strategic value of the acquisition is evident, with Ayana having a portfolio of 4.1 GW of operational and in-construction renewable energy assets and another 1 GW in the pipeline.

Ayana's assets are especially precious, as they are contracted with very reputable off-takers such as SECI (Solar Energy Corporation of India), NTPC, GUVNL (Gujarat Urja Vikas Nigam Limited), and Indian Railways, guaranteeing a strong revenue stream for ONGPL upon completion of the deal. The acquisition is a significant milestone in ONGPL's strategy to strengthen its renewable energy assets, which will be instrumental in driving India's low-carbon transition.

This deal is not only important for ONGPL but also for the renewable energy market in India. The country has embarked on a path of sustainability, and with ONGPL's expanded portfolio, the company is in an even stronger position to help drive India's renewable energy goals. The Indian government has established a target of 500 GW of renewable capacity by 2030, with a larger vision of Net-Zero emissions by 2070. ONGPL's acquisition of Ayana Renewable Power will directly contribute to these targets and help the country's transition to clean energy.

The deal is also significant as it includes investments from leading global players, such as the National Investment and Infrastructure Fund (NIIF), British International Investment Plc (BII), and Eversource Capital. These investors have rich experience and resources that will further boost the growth of ONGPL's renewable energy business. The transaction also highlights the significance of international collaborations in attaining sustainability goals.

Ayana Renewable Power, established in 2018, has achieved impressive strides in the renewable energy space under the guidance of its strategic investors. Ayana Renewable Power has diversified its portfolio to host an array of solar, wind, and round-the-clock (RTC) renewable energy projects. Ayana has also gained widespread recognition for its environmental, social, and governance (ESG) practices and has been rated 1st in Asia and among the top three in the world by ISS ESG. This ESG excellence adds more value to the acquisition and strengthens ONGPL's focus on sustainability.

ONGC and NTPC's leadership has reiterated the long-term strategic rationale behind the transaction. Sanjay Mazumdar, CEO of ONGC Green Limited, called the deal a milestone moment in the company's path towards a sustainable energy future. He cited the company's technical capabilities and financial acumen as major drivers that will enable them to deliver maximum shareholder value while driving India towards a low-carbon economy. Likewise, Rajiv Gupta, CEO of NTPC Green Energy Limited, referred to the acquisition as a landmark transaction for India's clean energy industry. He pointed out that it supports NGEL's ambitious vision of reaching 60 GW of renewable energy capacity by FY32 and making the company a prominent developer of utility-scale renewable energy projects.

After fulfilling the regulatory approvals and conditions precedent, ONGPL will complete the acquisition, significantly enhancing its renewable energy portfolio. This transaction places ONGPL at the forefront of India's clean energy transition and further speeds up the country's advancement towards achieving its renewable energy and Net-Zero emissions goals. With ONGPL forging ahead, the Ayana Renewable Power acquisition will be a defining factor in the future of India's energy sector and its ability to fulfill sustainability objectives.

The transaction is more than a commercial one; it is a crucial milestone in India's overall environmental policy and a sign of the growing significance of renewable energy in India's economic growth. The purchase signifies the increased synergy between local and global investors in steering India's clean energy revolution towards a more sustainable and environmentally friendly future for future generations.