One Of India’s Largest Renewable Energy Deals Likely Between Actis & ReNew Power

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Stung by rising competition and missed opportunities in several of the recent solar and wind energy auctions, one of India’s leading renewable energy IPPs is aggressively exploring inorganic growth options.

ReNew Power Ventures, backed by Goldman Sachs, is now looking to acquire assets of Ostro Energy, another India-based renewable energy IPP that is backed by global private equity firm Actis. If this deal comes to fruition it could be one of the largest renewable energy deals in India.

Ostro Energy has an operational wind energy capacity of 648 megawatts and another 460 megawatts of solar and wind energy capacity under construction that are likely to be operational by 2019. ReNew Power is perhaps the largest private sector renewable energy company in India with around 3.5 gigawatts of solar and wind energy capacity operational or under-construction. The company targets an operational capacity of 11 gigawatts over the next few years.

It is to perhaps this very target that ReNew Power is aggressively scouting for acquisition targets. Few months back the company was reported to have shown interest in another renewable energy IPP — Orange Renewables. ReNew Power had reportedly entered a non-binding agreement with Orange to acquire its 600 megawatts of capacity. There have been no recent updates on the status of this transaction.

ReNew Power is among a very few core renewable energy companies that can muster the resources to undertake such deals. Apart from Goldman Sachs, Global Environment Fund, Abu Dhabi Investment Authority, Asian Development Bank and JERA have invested in the company.

The company has also filed for an initial public offering and plans to raise $150 million. These funds could very well be used to fund one or more acquisitions that company may undertake.