Adani Green Energy to Acquire 40 MW Operational Solar Asset in Odisha

Adani Renewable Energy (MH) Limited (AREMHL), a wholly-owned subsidiary of Adani Green Energy Ltd (AGEL), has signed definitive agreements with Essel Green Energy Pvt Ltd to acquire 100% economic value in an SPV that owns a 40 MW operating solar project in Odisha. The company confirms that the project has a long-term Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) for Rs 4.235 per unit, with remaining PPA life of about 22 years. This asset might possibly have been left out when AGEL previously announced taking over all of Essel’s solar assets, possibly to complete a PPA clause on resale before 3 years.

The closing of the transaction is subject to customary conditions. The acquisition of the project is at an enterprise valuation of Rs 219 Cr.

This acquisition will take AGEL’s total renewable capacity of 19.8 GW, including 5.4 GW operational assets, 5.7 GW assets under construction and 8.7 GW near construction assets.

Vneet Jaain, Managing Director & CEO of Adani Green Energy Ltd., said,” We remain focused on opportunities that help us create value for shareholders, as well as facilitate the growth of environment-friendly green power in India. With the acquisition of this project in Odisha, AGEL will now have its footprint across 12 states in India. We are on an expansion path that will make us the world’s largest renewable player by 2030.”

Recently, AGEL finally saw progress on its largest project, the 8 GW manufacturing linked tender, where SECI has finally managed to open up the account on the buyers side, and hopes to close out the remaining capacities by end of the year. That will allow both AGEL and Azure Power, the second winner, to proceed.

On the acquisition front, AGEL has been acquiring assets regularly, notably SB Energy’s India portfolio, besides a slew of smaller deals. Listed in 2018, AGEL today is a USD 19 billion market cap company.