Waaree Energies, JSW Acquire Renewable Assets In Deals Amounting to Rs 1400 Crores

On Jan 10, Waaree Energies Limited announced  the signing of a Share Purchase Agreement with Enel Green Power Development S.r.l (“Seller”) for acquisition of 100% of the share capital of Enel Green Power India Private Limited for a total amount of upto INR 792 Crores, subject to customary closing adjustments. Italy-based Enel is one of Europe’s largest renewable energy companies, and EGPIPL is its Indian business. EGPIPL owns solar and wind projects in India which includes approx. 640 MWAC / 760 MWDC operational and portfolio under development. Operational portfolio includes projects jointly owned with a partner where majority equity stake is with EGPIPL. Waaree is India’s largest solar module manufacturer.

On the dame day, JSW Neo Energy, a wholly owned subsidiary of JSW Energy Limited also announced the completion of acquisition
of 125 MW of renewable energy assets from Hetero Labs Limited and Hetero Drugs Limited housed under three SPVs.
The 125 MW portfolio comprises of wind projects located in the states of Andhra Pradesh and Maharashtra and have long term power purchase agreements. The portfolio has a blended tariff of ₹5.22/KWh and average remaining plant life of ~15 years. The total locked-in capacity of the company stands at 24.7 GW which consists of a diverse fuel mix and offtakers.
The transaction values the Hetero portfolio at an Enterprise Valuation of approximately ₹630 Crores, excluding net current assets and other adjustments under SPAs (Share Purchase Agreements).

JSW Energy’s current operational portfolio is 7,864 MW having a portfolio of Thermal 3,508 MW, Wind 2,290 MW, Hydel 1,391 MW and Solar 675 MW . The Company is presently constructing various power projects to the tune of 8.3 GW, with a vision to achieve a total power generation capacity of 20 GW before the year 2030 with a majority of it renewable power.

While the value of the transactions may not be vastly different, the quantum of capacity being acquired differs due to the different mix of solar and wind, and of course, the partner in case of Waaree Energies. Many will also wonder about the call to not use its other group firm and EPC specialist, Waaree Renewable Technologies Limited , when the latter already had a small IPP portfolio and experience with O&M and more.