Italy’s Enel Green Power is set to initiate acquisition of Indian renewable energy project developer Bharat Light & Power following an announcement made earlier this year.
In June, media outlets reported that Enel was planning to acquire a majority stake in Bharat Light & Power for an estimated $140 million. Bharat Light & Power is a wind energy project developer with operational capacity of 172 MW.
Bharat Light & Power came into the limelight following its acquisition of 150 MW worth of wind energy capacity from India’s largest real estate company, DLF Limited, in 2013. Last year, Bharat Light & Power announced plans to increase its operational capacity to 1 GW over a period of 5 years at an investment of $1 billion.
Enel Green Power is expected to invest and acquire a majority stake in Bharat Light & Power in tranches, starting with a $56 million investment. The capital infusion is expected to help Bharat Light & Power expand its operational capacity.
Merger and acquisition activity in the Indian renewable energy sector has increased significantly over the last few months following the government’s aggressive push to boost clean energy infrastructure. Foreign investment in the renewable energy sector will be critical for India to achieve its ambitious target to achieve an installed renewable energy capacity of 175 GW by 2022.
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