CCI Approves Acquisition of AGE’s Solar Assets by Adani-Total JV

CCI has approved the acquisition of solar energy generation assets of AGE10L by AGE23L, which is the JV controlled by Total Solar and Adani Green Energy.

The Competition Commission of India (CCI) has approved the acquisition of solar energy generation assets of Adani Green Energy Ten Limited (AGE10L) by Adani Green Energy Twenty-Three Ltd (AGE23L), under Section 31(1) of the Competition Act, 2002. AGE23L is the joint venture (JV) jointly controlled by Total Solar Singapore and Adani Green Energy Limited (AGEL). AGE23L (through its subsidiaries) is engaged in the business of solar power generation in India.

The assets proposed to be acquired consist of (i) TN Urja Private Limited; (ii) Essel Urja Private Limited; (iii) PN Renewable Energy Limited; (iv) PN Clean Energy Limited; (v) KN Indi Vijaypura Solar Energy Private Limited; (vi)  KN Bijapura Solar Energy Private Limited; (vii) KN Muddebihal Solar Energy Private Limited; (viii) KN Sindagi Solar Energy Private Limited; (ix) Essel Bagalkot Solar Energy Private Limited; and (x) Essel Gulbarga Solar Power Private Limited (collectively referred to as target companies). Adani Green Energy Ten Limited (AGE10L) is the holding company of the target companies.

The assets which are being transferred to the Adani-Total JV have a combined solar generating capacity of 205 MW, and are located in Punjab, Karnataka and Uttar Pradesh. The 10 assets that are being transferred are part of the 205 MW portfolio that Adani Green Energy recently acquired from Essel Green Energy Private Limited (EGEPL) and Essel Infraprojects Limited (EIL).

Adani Group Chairman, Gautam Adani, commented, “India continues to be one of the most attractive markets for clean energy globally. We are delighted to expand our partnership with Total and are committed to growing our renewables JV platform with them. This step is in line with our ambition of achieving 25 GW of renewable power capacity by 2025 and becoming the world’s largest renewable power company by 2030.”

In August 2019, when the firm had first announced the execution of definitive agreements of the acquisition of the Essel Portfolio, it had stated that the acquisition of these assets is at an enterprise valuation of approximately Rs 1,300 crore.

Vneet Jaain, Managing Director & CEO of Adani Green Energy, had said last month that “the acquisition of 205 MW solar portfolio expands our footprint in states where we already have a presence, and with our strong operational expertise, we will deliver significant value for our shareholders. This is another step towards taking AGEL closer to its targeted footprint of 25 GW of renewable power by 2025.”

All of the projects have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies. The portfolio is relatively young with average remaining PPA life of approximately 21 years.