Enel Group to sell Indian renewable energy arm for $300 million – EQ
In Short : The Enel Group has recently made the decision to sell its Indian renewable energy arm for $300 million. This move highlights the evolving landscape of the renewable energy sector and the strategic choices companies make to optimize their operations.
In Detail : Italy’s Enel (BIT:ENEI) Group is set to divest its renewable energy division in India, Enel Green Power India, with HSBC orchestrating the deal. The move involves selling a portfolio that encompasses 760 megawatts (MW) of operational wind and solar power projects, with solar energy contributing 420MW and wind power adding another 340MW. The transaction also includes a substantial development pipeline of 2 gigawatts (GW) and existing power purchase agreements amounting to 190MW.
The strategic decision reflects Enel’s continuous commitment to the renewable sector while capitalizing on the growing interest in India’s green energy market. In 2020, Enel Green Power India embarked on a collaboration with Norfund, a Norwegian investment entity focused on developing countries, to advance new renewable projects within the country. This was in line with Enel Group’s broader strategy to expand its footprint in the Indian energy market, which included expressing interest in managing Puducherry’s electricity distribution network and submitting a preliminary offer for the electricity distribution operations of Reliance Infrastructure Ltd.
The sale process is just beginning and is expected to formally launch soon. With an estimated equity value of around $300 million, this divestiture signifies a notable shift in Enel’s operations in India, underscoring the country’s potential as a hub for renewable energy investment.
