India's Green Future: Major Firms Bid for O2 Power's 350MW Projects

Major firms Gentari, Edelweiss & Actis vie to acquire O2 Power's 350 MW projects, heralding a vibrant era in India's green energy sector

India's Green Future: Major Firms Bid for O2 Power's 350MW Projects

Monday September 18, 2023,

3 min Read

In an ambitious move signifying the vigorous growth and potential of India's green economy, a trio of major firms have been shortlisted as the final contenders to acquire solar projects amassing a colossal 350 MW from O2 Power. This dynamic venture, which witnesses an amalgamation of companies from varied backgrounds, underscores India's steadfast journey towards becoming a powerhouse in the global renewable energy space.

O2 Power, a renowned renewable energy platform in India, nurtures the vision of establishing a remarkable portfolio of around 5 GW over the forthcoming five years. With roots tied to the expertise of former ReNew Power magnates such as Parag Sharma, Peeyush Mohit, Rakesh Garg, and Nimish Agrwal, the firm already prides itself on an impressive portfolio of 2.6GW, including 600MW that have already been commissioned.

The bidding race sees an impressive line-up including Gentari Sdn Bhd, a subsidiary of Malaysia's government-run Petroliam Nasional Bhd, Sekura Energy Ltd, backed by Edelweiss Infrastructure Yield Plus Fund, and private equity heavyweight, Actis LLP. The acquisition transaction, boasting an equity value of $50 million and enterprise value approximated at $200 million, is orchestrated by the global leader in consultancy services, EY. These contenders emerged victorious from a pool of a dozen non-binding offers, taking one step closer to carving their niche in India's burgeoning green economy.

This isn't the first foray for these giants into India's renewable energy sector. Actis, a firm with exclusive investments in emerging markets, has previously pledged a staggering $2.1 billion to India and is actively pursuing the acquisition of Macquarie Asset Management's Vibrant Energy. Concurrently, they are nurturing their third clean energy venture, BluPine Energy, after successful stints with Sprng Energy and Ostro Energy.

On the other hand, Gentari and Edelweiss are not only eyeing O2 Power's prospects but also contending for 185MW solar projects from Finnish state-operated power utility, Fortum Oyj. In a recent development, ReNew Energy Global Plc announced a promising collaboration with Gentari to conjure a massive capacity of 5GW, solidifying Gentari's footing in the renewable energy landscape of India.

India's green energy sector is undergoing a transformative phase, with power demands surging to an unprecedented high of 239.9GW, outpacing the Central Electricity Authority's projections. At present, the nation boasts an installed renewable energy capacity of 172GW, with a promising pipeline of projects summing up to 128GW either under development or bid out.

Enhancing its global footprint, India is also fostering robust energy alliances globally. A testament to this is the recent agreement with Saudi Arabia to interlink their power grids using a subsea cable, a move aimed at bolstering grid security amidst the growing reliance on renewable energy sources like wind and solar. In a bid to export its solar expertise worldwide, India is leveraging platforms like the International Solar Alliance and spearheading initiatives such as the One Sun One World One Grid, aiming to facilitate the seamless transfer of solar energy across regions to cater to varying electricity demands.

As the world sets its sights on the upcoming climate change conference (COP28), India aligns its vision with global objectives, aiming to secure a monumental annual fund of $100 billion to aid developing nations in their climate finance endeavours.

In the light of these developments, it is evident that India is not just a spectator but a formidable player in the global shift towards a sustainable future, fostering collaborations and paving the way for a greener tomorrow.

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