Adani Green Energy signs $3.5bn deal to acquire SB Energy India

Adani Green Energy has signed a deal worth nearly $3.5 billion to acquire SB Energy Holdings (SB Energy India), an Indian renewable energy company, from SoftBank Group (SBG) and Bharti Group.

Japan-based SoftBank Group has an 80% stake in SB Energy India, which was established in 2015. Bharti Group, on the other hand, holds the remaining 20% stake.

The deal, considered to be the largest in the Indian renewable energy industry, gives Adani Green Energy a portfolio of 4.95GW spanning four states in India.

Commenting on Adani Green Energy acquisition of SB Energy India, Masayoshi Son – Representative Director, Corporate Officer, Chairman and 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.

“We are immensely proud of all that we have accomplished. As SBG continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth.”

Adani Green Energy acquisition of SB Energy India. Photo courtesy of Adani Green Energy Limited.

SB Energy India’s portfolio comprises large scale utility assets of which 4.18GW is solar capacity, 450MW is wind-solar hybrid capacity, while 324MW is wind capacity.

The operational solar power capacity of SB Energy India is 1.4GW with a further capacity of 3.55GW under construction.

According to Adani Green Energy, all the projects are backed by 25-year power purchasing agreements (PPAs) signed with sovereign-rated counterparties such as Solar Energy Corporation of India (SECI), NHPC, and NTPC.

The Adani Group company is set to expand its total renewable capacity to 24.3GW and its operating renewable capacity to 4.9GW following the acquisition. Also included in the figures is 4.5GW of solar power capacity for which the company expects to be issued letter of award.

Gautam Adani comments on Adani Green Energy acquisition of SB Energy India

Gautam Adani – Chairman of Adani Group, commenting on Adani Green Energy acquisition of SB Energy India, 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 has accelerated its global commitment towards climate change and we intend to do our part to execute on the promises made.

“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.

“The quality of assets that SoftBank and the Bharti Group have built are excellent and I compliment their efforts to support India’s renewable energy transition. We are proud to take their legacy forward.”

The acquisition is contingent on customary approvals and other conditions.