Engie tasks Kotak to find India solar JV partner
3 min read . Updated: 24 Feb 2023, 11:41 PM IST
Premium- India’s green energy deal space is abuzz with a host of transactions in the works, including ReNew Energy Global Plc planning to sell a minority stake in its commercial and industrial (C&I) projects for around $300 million as part of its capital recycling strategy
France’s Engie SA, one of the largest foreign investors in India’s solar power sector, has hired Kotak Investment Banking to scout for a joint venture partner to build nearly 3 gigawatts (GW) of solar power capacity in India and raise $250 million in equity, two people aware of the development said.
Engie has a 1.3GW renewable energy portfolio in India, including wind and solar assets, and has been exploring a partnership model to drive growth. It earlier sold a 74% stake in its solar assets in India to alternative investment fund Edelweiss Infrastructure Yield Plus for $550 million. The company has an installed renewable energy capacity of 38GW globally and an 80GW pipeline.
A spokesperson for Engie said that the company doesn’t comment on market rumours. Queries emailed to a spokesperson for Kotak Investment Banking, a division of Kotak Mahindra Bank, on 13 February remained unanswered till press time.
India’s green energy deal space is abuzz with a host of transactions in the works, including ReNew Energy Global Plc planning to sell a minority stake in its commercial and industrial (C&I) projects for around $300 million as part of its capital recycling strategy; and Macquarie Asset Management, one of the largest foreign infrastructure investors in India, appointing Bank of America (BofA) to sell around 450 megawatts (MW) of solar projects for an equity value of around $250 million.
Prime Minister Narendra Modi on Thursday sought investments in India’s green economy. He said the country’s solar, wind and biogas potential for the private sector is “no less than any gold mine or oil field." This comes against the backdrop of domestic electricity requirement expected to grow by 9.5% this fiscal, with a peak electricity demand growth of 6.82%.
India has an installed renewable energy capacity of 167GW.
Global investors have pumped $78.1 billion into the Indian renewables space from 2014 to 2022. UAE minister of industry and advanced technology and Adnoc group CEO Sultan Al Jaber, while speaking at World Sustainable Development Summit hosted by The Energy and Resources Institute (Teri) in New Delhi on Tuesday, said, “India’s sustainable development is critical, not just for India, but for the whole world. India’s goal of adding 500GW of clean energy in the next seven years is a powerful statement of intent."
UAE is among the largest green energy investors globally and in India through Mubadala Investment Co., Abu Dhabi National Energy Company PJSC (Taqa), Masdar and Abu Dhabi National Oil Co (Adnoc), and has set a renewable energy capacity target of 100GW globally by 2030. India has committed to increasing non-fossil energy capacity to 500GW by 2030 as part of its plan to achieve net-zero carbon emissions by 2070.
“And, as one of the largest investors in renewables, the UAE will explore all opportunities for partnership with India to contribute to its high growth, low carbon pathway," Al Jaber, who is COP28 UAE president-designate and chairman of Masdar, added.
According to the Central Electricity Authority (CEA), India’s apex power sector planning body, the share of non-fossil fuel generation will grow from 42% of the installed capacity in October last year to 64% by 2029-30.