Renewable Energy M&A: India witnesses 2X y/y rise in corporate consolidations for utility-scale solar platforms in 2022

published on 17 May 2023

The country has seen deals worth $4.2bn in 2022, according to the Enerdatics' Energy Transition M&A database. We understand that the activity is driven by the rising demand for clean energy in the country's fast-growing commercial, industrial, and technology sectors, which accounted for ~70% of all corporate PPAs signed in India in 2022. This is spurring foreign and domestic investors to acquire local developers and independent power producers (IPPs) in an effort to establish a footprint or expand their presence in the country’s power generation space. The efforts are supported by the presence of strong power market fundamentals and a stable political and fiscal regime, which have driven the inflow of billions of dollars of institutional equity capital.

Recent deal: KKR-backed IndiGrid agreed to acquire Virescent Renewable Energy Trust for $490mn. The company has 538 MW of operational solar capacity and reportedly aims to achieve 1.5 GW of installed capacity in the next 2-3 years, according to a senior executive from the company. The deal follows a competitive bidding process that attracted interest from major players, including Adani Green, Shell, Torrent, and Actis. 

Other significant transactions: Brookfield invested ~$1bn in solar developer Avaada Group in Apr’23. Other recent transactions include Sembcorp’s acquisition of a stake in Vector Green Energy for $595mn, Hero Group and KKR’s $450mn investment in Hero Future Energies, and Shell’s $1.5bn takeover of Sprng Energy.

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.

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