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Adani Green to Buy SB Energy’s 5 GW Renewable Portfolio for USD 3.5 Billion

Adani Green to Buy SB Energy’s 5 GW Renewable Portfolio for USD 3.5 Billion


Ahmedabad: Adani Green Energy Limited (AGEL), signed definitive agreements for the acquisition of 100 per cent interest in SB Energy India on May 19, 2021. Earlier, AGEL owned 80 per cent stakes in SB energy and the remaining 20 per cent was owned by Bharti Group.

Reportedly, the transaction is for a fully completed enterprise valuation of approximately USD 3.5 billion (Rs. 26,000 Cr.). The transaction marks the largest acquisition in the RE sector in India. The total renewable portfolio of SB Energy India is about 4,954 MW spread across four states of the country.

This acquisition will enable AGEL to achieve its target renewable portfolio of 25 GW four years ahead of the target timeline.  As per reports, the target portfolio comprises large scale utility assets with 84 per cent solar capacity (4,180 MW), nine per cent wind-solar hybrid capacity (450 MW) and Seven per cent wind capacity (324 MW). The portfolio contains a total of 1,400 MW operational solar power capacity. Further, 3554 MW of solar power capacity is under construction.

These projects have a 25-year power purchase agreement (PPA) with sovereign rated counterparties such as Solar Energy Corporation of India Ltd. (SECI), NTPC Limited and NHPC Limited. Solar Park based projects form a primary part of the operating assets of the portfolio.

They are built following best in class governance, project development, construction, and operations and maintenance practices. This resulted in it being amongst the highest quality renewable portfolios in the country.

Adani Green will achieve a total renewable capacity of 24.3 GW through this acquisition along with 4.9 GW operating renewable capacity. This acquisition shows Adani Green’s intention to be the leader in sustainable energy transition globally and makes it amongst the largest renewable energy platforms in the world. The closing of the transaction is subject to customary approvals and conditions.

Gautam Adani, Chairman, Adani Group, said, “This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030.

India, without any doubt, has been one of the few nations that has accelerated its global commitment towards climate change and we intend to do our part to execute on the promises made.

The renewable energy platform that we are building will lay the foundation for attracting several other global industries that are increasingly looking to reduce their carbon footprint (as well as lay the foundation for opening up adjacent platforms that include Hydrogen and Storage). We are well on our way to achieve our stated solar portfolio targets four years before the deadline we set for ourselves.

he quality of assets that SoftBank and the Bharti Group have built are excellent and I compliment their efforts to support India’s renewable energy transition. We are proud to take their legacy forward.”

Masayoshi Son, Chairman & CEO, SoftBank Group Corp. stated, “We established SB Energy India in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy.

We are immensely proud of all that we have accomplished. As SBG continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth.”

Sunil Bharti Mittal, Chairman, Bharti Enterprises, said, “I am delighted that SB Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India.

Adani Group has an outstanding track record of building a green energy powerhouse which will get further acceleration with the combination of SB Energy into its fold. I am glad that Bharti could play a constructive role in partnership with SoftBank.”

Gautam Adani shared a post through twitter stating, “With effects of climate change increasingly evident, our focus on renewable energy has accelerated. Acquisition of SoftBank’s & Bharti’s 5 GW RE portfolio is aligned with India’s COP 21 aspiration and our goal to be the world’s largest Renewable Energy Company by 2030.”

Anand Gupta Editor - EQ Int'l Media Network