Three major bidders have entered the final stage of competition to acquire O2 Power’s 350 megawatts (MW) of solar projects in India. These bidders, actively seeking opportunities in India’s green economy, are Gentari Sdn Bhd, a unit of Malaysia’s state-run oil and gas company Petroliam Nasional Bhd; Edelweiss Infrastructure Yield Plus Fund’s Sekura Energy Ltd; and private equity firm Actis Llp. The transaction, with an equity and enterprise value of $50 million and $200 million, respectively, is being managed by EY, with these three bidders selected from a pool of approximately a dozen non-binding offers (NBOs).
These bidders are also actively exploring opportunities in India’s renewable energy sector and are in contention to purchase 185MW solar projects from Finnish state-run power utility Fortum Oyj. Actis, known for its investments in emerging markets, has already committed $2.1 billion to India. Additionally, Actis is competing for Macquarie Asset Management’s Green Investment Group (MAM-GIG) platform Vibrant Energy, in which India’s quasi-sovereign wealth fund National Investment and Infrastructure Fund Ltd is also participating.
O2 Power is a significant player in India’s renewable energy landscape, with ambitious plans to build a portfolio of around 5 gigawatts (GW) over the next five years. Founded by former executives of ReNew Power, O2 Power already boasts a 2.6GW portfolio, with 600MW already commissioned.
India’s green energy sector has been attracting substantial interest due to the country’s growing demand for power. Power demand recently reached a record 239.9GW, surpassing projections by the Central Electricity Authority (CEA). India currently has 172GW of installed renewable energy capacity, with an additional 128GW under development or awarded through bids.
India is also leveraging its green economy to establish global energy partnerships, such as the agreement with Saudi Arabia to connect their power grids through a subsea cable. This collaboration aims to enhance grid security, particularly in dealing with variable energy sources like wind and solar.
Furthermore, India is actively promoting initiatives like the International Solar Alliance (ISA) and One Sun One World One Grid (OSOWOG) to share its solar power expertise globally and interconnect power grids across regions for efficient energy sharing.
The upcoming climate change conference (COP28) seeks to secure $100 billion annually in climate finance for developing nations, highlighting the global commitment to addressing environmental challenges and promoting sustainable energy solutions.
