Deal details: Eversource and JSW have been shortlisted out of a pool of five bidders, which also included PETRONAS and Sembcorp Industries. Other companies that had previously expressed interest in Continuum, including bp, Statkraft, and I Squared Capital, did not participate in the bidding process managed by Citibank and Deutsche Bank. The potential deal is for a 100% stake in Continuum, majority-owned by Morgan Stanley and its founders. The platform currently owns a 4 GW solar and wind portfolio, which includes 1.3 GW of operational and pre-operational capacity, while the remaining capacity is part of the company’s growing development pipeline.
Enerdatics Insight: We understand that India has emerged as a major market for renewables investments by US-based and European investors, as they try to diversify their holdings beyond the West. Enerdatics’ data suggests that the number of corporate takeovers and equity investments by foreign players in India's renewables sector has increased by 50% y/y in 2022, with companies including Shell, BlackRock, Partners Group, and KKR all making major moves. Rising power demand, coupled with strong power market fundamentals and a stable political and fiscal regime are the primary drivers of deal activity.
The International Energy Agency (IEA) has forecasted that India will witness an 81% increase in power demand by 2025, primarily driven by the country’s industrial and technology sectors, which accounted for over 90% of the country’s corporate PPAs in 2022. The high growth potential, augmented by a favorable regulatory environment and the availability of cheap labor, is incentivizing foreign investments in the country’s renewable space.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.