New Delhi: Dutch multinational SHV Energy has commissioned BNP Paribas to sell the solar energy assets of its subsidiary SunSource Energy in a deal worth around $100 million, according to two people familiar with the matter.
The transaction, which is in its early stages, involves the sale of 290 MW of SunSource Energy’s operating assets in the commercial and industrial segment, and a framework to fully acquire the 300 MW financed portfolio upon commissioning.
“The transaction involves a combination of secondary sale and primary infusion,” said one of the two people, requesting anonymity.
SHV Energy, which has a presence in liquefied petroleum gas (LPG), liquefied natural gas (LNG) and green energy, acquired a majority stake in SunSource Energy in May 2021. SunSource Energy was founded by Adarsh Das and Kushagra Nandan in 2010.
Spokespeople for SHV Energy, SunSource Energy and BNP Paribas did not respond to emailed questions on Oct. 22.
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India’s green journey
The proposed deal comes amid strong investor interest in India’s commercial and industrial segment, Mint reported.
Thailand’s energy company Banpu Public Co. Ltd, Generation Investment Management’s Just Climate LLP, headed by former US Vice President Al Gore, and Singapore’s CapitaLand Investment Ltd have been shortlisted to acquire Radiance Renewables Pvt. Ltd., backed by Eversource Capital. Limitedin a deal that has an enterprise value of around $325 million.
This investor interest also comes at a time when India’s green energy trajectory is booming. India is undertaking the largest renewable energy program globally, leading to an investment of Rs 8.5 trillion in the country’s renewable energy sector between 2014 and 2023.
The regulatory landscape also supports the commercial and industrial segment, with rules allowing large energy users to source power from the open market rather than the more expensive grid.
Commercial and industrial projects are also protected from risks such as reduction of power supply by state-owned power distribution companies. Additionally, the implementation of an hourly rate for large commercial and industrial consumers by state electricity regulatory commissions has helped maintain investor interest.
Also read | India’s renewable energy boom slowed by regulatory ambiguity over sales agreements
India has an installed renewable energy capacity of 210 GW, including 90.76 GW of solar capacity and 47.36 GW of wind power.
Rajasthan, Gujarat, Tamil Nadu and Karnataka have taken the lead in setting up green energy projects, with installed capacities of 29.98 GW, 29.52 GW, 23.70 GW and 22.37 GW, respectively.
Additionally, the Union government is focusing on promoting manufacturing of solar cells and modules. India currently has a cell manufacturing capacity of around 10 GW and a module manufacturing capacity of 60 GW.
Also read | India’s green energy push creates unique resale market
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