Adani Green’s Record Deal Signals Rise Of Big Three In Indian Renewables: BNEF

India’s renewable energy sector is witnessing market consolidation after Adani Green Energy Ltd. struck a record deal with SoftBank Group’s SB Energy India, according to Bloomberg New Energy Finance.

ReNew Power, Greenko Energy Holdings and Adani Green have emerged as the three big renewable energy firms in India, with each sharing similar traits, BNEF said in a recent note.

All three firms now own a renewables portfolio that exceeds 10 gigawatts in capacity, have equity infusions close to $1 billion or more since the start of 2020, complex renewables projects in the pipeline, large debt funding and diversification across the value chain, the report said.

These traits have allowed the three firms to pull away from peers, BNEF said. “Other firms show some of these traits but none has done all five in the same way as these three.”

Last week, billionnaire Gautam Adani-controlled Adani Green Energy agreed to buy SoftBank’s renewable assets in India for an enterprise value of $3.5 billion. While Adani did not disclose details of the deal, the valuation makes it the largest clean power deal in the country.

SB Energy portfolio consists of almost 5 GW of solar and wind assets, of which 1.4 GW are currently operational, according to Adani’s statement. SoftBank held 80% stake in SB Energy, with Bharti Group holding the remaining 20%.

Adding the unit moves Adani Green closer to its goal of having 25 GW of renewable power capacity by 2025. The firm has been seeking acquisitions to bolster its roster of assets, after being faced with delays in starting some large projects.

Prior to the SoftBank deal, Adani Green had secured capital from both equity and debt markets. The company in March 2021 also closed a $1.35-billion revolving project finance facility from 12 international banks to finance one of its under-construction projects.