Investors Eye Enel’s 760 MW Renewable Assets in India – EQ

In Short : Investors are showing interest in Enel’s 760 MW renewable assets in India, signaling strong demand for clean energy investments. The portfolio includes wind and solar projects, reflecting the growing attractiveness of India’s renewable energy sector.

In Detail : Mumbai : In a significant development in India’s renewable energy sector, a consortium of prominent investors, including Masdar Energy, Sembcorp, JSW Energy, Torrent Power, Sekura Energy, and ONGC, have submitted non-binding bids for the acquisition of Enel Group’s operational assets. The portfolio, managed under Enel Green Power India, encompasses 760 megawatts (MW) of operational wind and solar power assets, alongside a substantial development pipeline of 2 gigawatts (GW).

Sources familiar with the matter revealed that Enel has engaged HSBC as its advisor for the sale, which is estimated to carry an enterprise value of $500 million (₹4,100 crore). This move signifies a significant shift in the Indian renewable energy landscape, attracting substantial interest from both domestic and international players.

Enel Green Power India’s existing operational capacity comprises 420 MW from solar power projects and 340 MW from wind power projects. The strategic acquisition of these assets presents a lucrative opportunity for investors to bolster their presence in India’s burgeoning renewable energy market.

The proposed deal follows Enel’s prior investments in India’s renewable energy sector, including partnerships with Norfund and KLP for a wind power plant project and a joint investment agreement with Norfund for renewable energy projects. Enel Green Power, a subsidiary established in 2008 within the Enel Group, manages over 63 GW of installed renewable capacity globally, underscoring its robust presence in the sector.

While spokespersons for Enel, ONGC, Masdar, and Sekura Energy declined to comment, JSW Energy, Sembcorp, and Torrent Power did not respond to queries, indicating the confidentiality of the ongoing negotiations.

This development aligns with the broader trend of heightened investor interest in India’s renewable energy market, buoyed by strong policy support from the government and increasing sustainability initiatives by commercial and industrial stakeholders. With the outlook for the renewable energy sector remaining stable, the competition for Enel’s assets underscores the sector’s attractiveness as a key driver of India’s transition towards cleaner and more sustainable energy sources.