Electricity producer Torrent Power Ltd. and Singapore-listed utility company Sembcorp Industries Ltd. are in a race to buy clean energy platform Vector Green Energy, the Mint newspaper reported, citing unidentified people familiar with the matter.
The deal is expected to have a net worth of 30 billion rupees ($377 million) and an enterprise value of 50 billion rupees, the report said on Saturday, adding that the sale process is being handled by Standard Chartered. Vector Green has 700 megawatts of operational and 300 megawatts of wind and solar assets under construction, in addition to having 1 gigawatt of investment-ready asset in the pipeline, Mint said.
Vector Green Energy belongs to funds managed by the Indian subsidiary of Global Infrastructure Partners. A spokesperson for Standard Chartered declined to comment to the newspaper, while spokespersons for Vector Green and Sembcorp did not respond to questions emailed by Mint, according to the report. A GIP spokesperson said: “As a matter of principle, we do not comment on market speculation.
Investments are increasing in India’s renewable energy sector as the country aims to cut 1 billion tonnes of carbon emissions by the end of this decade and reach net zero by 2070. The government of Prime Minister Narendra Modi has also pledged to cut emissions by 45% from 2005 levels and use non-fossil fuel sources to power half of its installed generating capacity by the end of this decade.
India has an existing capacity of around 15 gigawatts of solar cell and module manufacturing, while the addition of 50 gigawatts is underway, Energy and Renewable Energy Minister Raj Kumar said last month. Singh in an interview. Foreign investment in renewable energy averages about $9 billion to $11 billion a year, alongside major developments by domestic entities, Singh said.
Billionaire Gautam Adani has pledged to spend $70 billion on clean energy assets, including green hydrogen, while Reliance Industries Ltd. of Mukesh Ambani, one of India’s most valuable companies, plans to add production of solar panels, clean hydrogen electrolysers and rechargeable batteries. French oil giant Total Energies SE has agreed to partner with Adani on hydrogen in India.
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