Bank of America Corp. (BofA) is leading the sale process for the Stride platform, a significant deal with an equity valuation of around $163 million. Expected to conclude by February, this acquisition is generating substantial interest from key players.
According to recent reports, Actis stands out as the frontrunner among interested parties, including Gentari Sdn and Sekura Energy Ltd. This move by Actis underscores its strategic position in the renewable energy sector, highlighting the demand for premium assets in India.
“The SPA has been signed, with the Stride sale process anticipated to be finalized by the end of February,” sources familiar with the situation confirmed, providing a clear timeline for this critical acquisition.
Renewable Energy Market Dynamics
Macquarie Group has also re-entered the renewable energy market by putting its Green Investment Group (GIG) asset, Vibrant Energy, back on the block. Standard Chartered will manage the sale process, initially valued at $250 million, after an earlier attempt with JPMorgan was scuttled due to valuation discrepancies.
“The market environment has improved. Recent interest in the sector reflects a robust landscape, where no substantial renewable energy platforms are currently available for sale, highlighting Vibrant Energy’s attractiveness,” a source explained.
The expected launch of the Vibrant Energy sale is scheduled for March-April. With its 1.5-gigawatt (GW) portfolio in the commercial and industrial (C&I) sector, Vibrant Energy is poised to benefit from India’s strong green energy demand. This segment is particularly appealing due to cost-saving measures and risk mitigation features for large power users.
JSW Energy Ltd’s subsidiary, JSW Neo Energy Ltd, recently acquired O2 Power, a company founded by former ReNew Power executives, for $1.47 billion. O2 Power holds a 4.69 GW renewable energy portfolio, further solidifying JSW Group’s leadership in India’s green energy landscape.
Industry Outlook and Investment Trends
India’s green energy sector has witnessed explosive growth, driven by increasing energy demands and supportive government policies. In 2024, the country added 24.5 GW of solar power and 3.4 GW of wind power, bringing the total renewable energy capacity to 217.62 GW.
Analysts predict continued growth in India’s renewable energy sector. India Ratings and Research (Ind-Ra) forecasts an annual energy consumption growth rate of 5%-5.5% during 2024-25, with capacity additions reaching 30-35 GW, primarily through renewables.
“The share of renewable energy sources in the generation mix is expected to reach 55%-60% by 2029-30 and contribute 35%-40% to the total generation,” Ind-Ra stated in a recent report. The agency emphasizes that land acquisition, connectivity, and transmission infrastructure remain critical for achieving these expansion goals.
India’s strategy aims to add 50 GW of renewable energy capacity annually to reach its target of 500 GW by 2030. This ambitious goal is being supported by various initiatives, including the promotion of non-utility installations like rooftop solar, which grew by 4.6 GW in 2024, up 53% from the previous year.
The commercial and industrial sector plays a pivotal role in this growth, with C&I entities representing three-fourths of the installed rooftop capacity. This success is driven by the disparity in grid tariffs and more affordable third-party IPPs, encouraging businesses to transition to renewable energy sources.
Macquarie Group, a prominent foreign infrastructure investor in India since 2008, has committed $2.5 billion to energy transition and infrastructure projects. The company is also raising equity for its Indian fleet electrification platform, Vertelo, with interest from notable investors like APG, Marubeni Corporation, and Mubadala Investment Co.
Conclusion
The ongoing acquisitions and investments in India’s renewable energy sector signal a robust and expanding industry, driven by government support, technological advancements, and investor interest. These developments are critical for India’s ambitious renewable energy targets and the broader transition towards sustainable energy solutions.
As market conditions evolve andlarge-scale acquisitions continue, India remains a vital player in the global renewable energy landscape.
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