Adani Green Energy Completes Acquisition of 205 MW Solar Assets From Essel

Adani Green Energy has completed the acquisition of 205 MW operating solar assets from Essel Green Energy Private Limited and Essel Infraprojects Limited.

Adani Green Energy Limited (AGEL), the renewable energy business of the Adani Group, has announced that it has completed the acquisition of 205 MW operating solar assets from Essel Green Energy Private Limited (EGEPL) and Essel Infraprojects Limited (EIL).

The assets are located in Punjab, Karnataka and Uttar Pradesh, and all of them have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies. The portfolio is relatively young with average remaining PPA life of approximately 21 years. The acquired assets will be held 100 percent by Adani Renewable Energy Holding Ten Limited, a 100 percent subsidiary of AGEL.

The acquisition marks the first operational portfolio acquisition by AGEL. The firm had first announced the execution of definitive agreements for the acquisition of the Essel Portfolio last year on August 29, 2019.

Vneet Jaain, Managing Director & CEO of Adani Green Energy, said, “the acquisition of 205 MW solar portfolio expands our footprint in states where we already have a presence, and with our strong operational expertise, we will deliver significant value for our shareholders. This is another step towards taking AGEL closer to its targeted footprint of 25 GW of renewable power by 2025.”

In August 2019, the firm had stated that the acquisition of these assets is at an enterprise valuation of approximately Rs 1,300 crore.

The ten Special Purpose Vehicles (SPVs) that have been acquired under the deal are Essel Bagalkot Solar Energy (5 MW), Essel Gulbarga Solar Power (5 MW), Essel Urja (50 MW),  KN Bijapura Solar Energy (20 MW), KN Indi Vijayapura Solar Energy (20 MW), KN Muddebihal Solar Energy (20 MW), KN Sindagi Solar Energy (5 MW), PN Clean Energy (20 MW), PN Renewable Energy (20 MW) and TN Urja (50 MW).

Recently, the firm had also announced the financial results reporting a strong Q1 for FY 2021, for the quarter ended June 30, 2020. The firm had reported that its total net export increased by 24 percent YoY on the back of capacity addition of 425 MW and steady CUF performance.

The firms’ solar Capacity Utilisation Factor (CUF) remained steady at 24.8 percent, better than the P75 target of 24.3 percent, supported by strong plant availability, grid availability and solar irradiation. While the firms’ wind CUF improved from 35.8 percent to 40.1 percent with improved plant availability and high grid availability.