A couple of leading private renewable energy developers based in India have expressed interest in acquiring solar power assets currently owned and being developed by SkyPower Global.
Last month, SkyPower Global appointed Yes Bank to look for buyers of its solar power projects in India. Recent media reports name Greenko Energy Holdings and ReNew Power Ventures as the prospective buyers. The interested companies are among the leading renewable energy IPPs or independent power producers in India.
Last year, Greenko Energy acquired 1.4 gigawatts of renewable energy assets from SunEdison India after the latter’s parent company went bankrupt. ReNew Power has emerged as one of the leading renewable energy developers in India in a very short span. The company has presence in several Indian states and regularly participates in competitive auctions for wind as well as solar power projects. ReNew has shown interest in acquiring assets from Orange Renewables as well.
The Indian subsidiary of SkyPower Global has a portfolio of 350 megawatts awarded in competitive auctions in the states of Madhya Pradesh and Telangana. In 2015, the company announced plans to set up 9.9 gigawatts solar power capacity in India over the next few years. However, the increased competition in the Indian solar power market may have forced the company to rethink its strategy.
Additionally, SkyPower also ran into some regulatory issues with a government entity of Madhya Pradesh which may or may not have influenced its decision to sell off assets. Madhya Pradesh Power Management Company Limited scrapped power purchase agreements with two projects of 50 megawatts each owned by subsidiaries of SkyPower Global, citing delays in project commissioning.
The decision has been challenged by SkyPower in an Indian court, where the decision is believed to be pending.
Apart from the steep decline in tariff bids in India over the last few years, state governments in India have also taken steps to retroactively reduce higher tariffs applicable to projects awarded before or during the initial stages of competitive auctions.