2024-10-28 12:47:00 :
NEW DELHI: Dutch multinational SHV Energy has appointed BNP Paribas to sell the solar assets of its unit SunSource Energy in a deal worth about $100 million, two people familiar with the matter said.
The transaction is in its initial stages and involves the sale of SunSource Energy’s 290 MW operating assets in the commercial and industrial sectors, as well as the framework for the full acquisition of a 300 MW financing pipeline upon commissioning.
“The transaction involves a secondary sale and an initial injection,” said one of the people, who requested anonymity.
SHV Energy, which is involved in liquefied petroleum gas (LPG), liquefied natural gas (LNG) and green energy, acquired a majority stake in SunSource Energy, founded by Adarsh Das and Kushagra Nandan, in May 2021.
Spokespersons for SHV Energy, SunSource Energy and BNP Paribas did not respond to inquiries emailed on Oct. 22.
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India’s green trajectory
The proposed deal comes amid strong investor interest in India’s commercial and industrial sector, Mint reported.
Thai energy company Banpu Public Co. Ltd, Just Climate LLP, a unit of former U.S. Vice President Al Gore’s Generation Investment Management, and Singapore’s CapitaLand Investment Ltd have been shortlisted to acquire Eversource Capital-backed Radiance Renewables Pvt. List. Ltd., the deal has an enterprise value of approximately $325 million.
Investor interest also comes at a time when India’s green energy trajectory is on the rise. India is implementing the world’s largest renewable energy plan, which will invest 8.5 trillion rupees in the country’s renewable energy sector between 2014 and 2023.
The regulatory environment also supports the commercial and industrial sectors, with rules allowing large electricity users to source their energy from the open market rather than from the more costly grid.
Commercial and industrial projects are also protected from risks such as purchase restrictions imposed by state-owned distribution companies. Additionally, the State Electricity Regulatory Commission’s implementation of time-of-use tariffs for large commercial and industrial consumers has helped maintain investor interest.
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India’s installed renewable energy capacity is 210 GW, including 90.76 GW of solar capacity and 47.36 GW of wind power capacity.
Rajasthan, Gujarat, Tamil Nadu and Karnataka took the lead in establishing green energy projects, with installed capacities of 29.98 GW, 29.52 GW, 23.70 GW and 22.37 GW respectively.
In addition, the federal government is focusing on promoting solar cell and module manufacturing. India currently has about 10 GW of battery capacity and 60 GW of module capacity.
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