SB Energy
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Adani Green Energy has undertaken one of the largest renewable energy acquisitions in India acquiring SB Energy at a value of $3.5 billion.

The asset acquisition deal signed between Adani Green Energy, SoftBank Group (SBG) and Bharti Group has been touted as the largest clean energy merger and acquisition (M&A) agreement ever to be signed in India.

The last substantially large M&A was in 2016 when Tata Power acquired the renewable energy assets of Welspun Energy for close to $1.4 billion.

As part of the SB Energy deal, Adani Green Energy takes 100% ownership of SB Energy India from both SBG and Bharti Group. The two companies owned 80% and 20% stakes in SB Energy India, respectively.

Adani Green Energy will now own and operate 4,954MW of renewable energy projects developed by SB Energy India in four Indian states. Of the projects, 84% (4,180MW) are solar, 9% (450MW) wind and solar hybrids and 7% (324MW) wind. Up to 1,400MW of solar is operational and 3,554 under construction.

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Gautam Adani, the chairman of Adani Group, said: “This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030. India, without any doubt, has been one of the few nations that have accelerated its global commitment towards climate change and we intend to do our part to execute on the promises made.”

The projects have 25-year power purchase agreements with large companies including Solar Energy Corporation of India Ltd. (SECI), NTPC Limited and NHPC Limited. The deal is part of efforts by Adani Green Energy to expand its contribution to the country’s transition to low-carbon energy resources. The projects increase Adani Green Energy’s renewables’ portfolio to 24.3GW of which 4.9GW are operational.

Adani added: “The renewable energy platform that we are building will lay the foundation for attracting several other global industries that are increasingly looking to reduce their carbon footprint (as well as lay the foundation for opening up adjacent platforms that include Hydrogen and Storage). We are well on our way to achieve our stated solar portfolio targets four years before the deadline we set for ourselves.”

Masayoshi Son, representative director, corporate officer, chairman & CEO of SoftBank Group, said: “We established SB Energy India in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy.”