Indian clean energy developer ReNew Power has acquired Ostro Energy Private Ltd for an undisclosed sum in what is one of India’s largest ever renewable energy deals.
Renew Power is backed by Goldman Sachs and Canada Pension Plan Investment Board (CPPIB), while Ostro is backed by London-based Actis LLP.
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ReNew Power currently has clean energy assets of more than 4.5GW, which include a commissioned capacity of approximately 2.8GW. Ostro Energy has a total capacity of more than 1.1GW – dominated by wind energy – out of which nearly 850MW has been commissioned. Ostro Energy’s assets are spread across Andhra Pradesh, Karnataka, Telangana, Rajasthan, Madhya Pradesh and Gujarat. It is building 110MW of solar PV.
With the acquisition of these assets, ReNew Power’s clean energy capacity will now exceed 5.6GW, of which more than 65% is operational.
Canada Pension Plan Investment Board (CPPIB) is investing an additional US$247 million to support ReNew Power’s financing for this acquisition. As a result, the CPPIB’s combined investment in ReNew Power now stands at US$391 million, following an earlier investment of US$ 144 million in January 2018.
Reuters has reported two sources claiming that the acquisition was valued at around INR100 billion (US$1.54 billion) including equity of INR40 billion, partly funded by Canada Pension Plan Investment Board (CPPIB), which is investing an additional US$247 million. CPPIB made an earlier investment in ReNew of US$144 million in January 2018. The Ostro acquisition also involved debt of INR60 billion.
Other major Indian renewable energy deals include Greenko acquiring SunEdison’s 587MW of solar and wind assets in India, and Tata Power Renewable Energy (TPREL) acquiring Welspun Renewables Energy (WREPL) for US$1.4 billion.