ReNew Power looks to acquire Waaree Energies’ solar assets

ReNew Power Ventures Pvt. Ltd is exploring the acquisition of Waaree Energies Ltd’s solar power generation projects as it seeks to consolidate its position as India’s largest clean energy firm before a planned initial share sale, two people aware of the development said.

“ReNew Power has been in talks with Waaree Energies for its solar power generation assets,” said one of the two people cited above, requesting anonymity.

The second person confirmed the development.

Goldman Sachs-backed ReNew Power has around 3.5 gigawatts (GW) of operational and under-construction capacity from its own wind and solar projects. It has set a target of over 11GW of wind and solar power capacity over the next five years.

Waaree Energies is one of India’s largest solar module manufacturers and has a 500 megawatt (MW) module manufacturing plant at Surat in Gujarat.

ReNew Power also plans to acquire global private equity firm Actis LLP’s Ostro Energy Pvt. Ltd, in a transaction that may rank among India’s largest renewable energy deals, Mint reported on November 7.

Hitesh Doshi, chairman and MD, Waaree Energies, didn’t respond to phone calls or to a message left on his cellphone. A ReNew Power spokesperson said in an emailed response: “On your query regarding Waaree Energies, we’re unfortunately not in a position to comment.”

Japan’s JERA Co. Inc. bought a 10% stake in ReNew Power for $200 million in February, valuing the company at $2 billion.

Apart from Goldman Sachs and the Abu Dhabi Investment Authority, other investors in ReNew Power include Asian Development Bank and Global Environment Fund.

India witnessed record low solar tariffs of ₹2.44 per unit in May, which rose to ₹2.65 per kilowatt-hour (kWh) in an auction conducted by the Gujarat government in September.

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