Serentica to raise $300 million
formal mandate to Rothschild & Co. for the sale of its C&I platform, as reported by Mint earlier.
Also, Amplus founder Sanjeev Aggarwal and I Squared Capital have set up Hexa Climate Solutions, wherein the New York-based private equity fund will invest around $500 million in the company that will cater to C&I sector.
Attracted by the opportunity, state run REC Ltd’s arm REC Power Development and Consultancy Ltd and Bharat Heavy Electricals Ltd (Bhel) this month announced a partnership to develop renewable energy projects that will focus on the C&I segment.
The interest in the C&I segment is being driven by the nation’s projected green energy trajectory, as well as rules allowing large power users to source energy from the open market rather than the costlier grid.
Another factor that has worked in C&I’s favour is most state electricity regulatory commissions (SERCs) implementing Time of Day (ToD) tariff for large C&I category consumers. ToD tariff refers to electricity costs depending upon the time of day
C&I projects are also shielded from risks such as power procurement curtailment by state-run power distribution firms.
India has an installed renewable energy capacity of 180.79 GW, which includes 73.31 GW solar and 44.73 GW of wind power capacity.
The country’s power demand has been clocking record highs in recent summers and is expected to set yet another new record of 260 GW in the coming summer.
This is attracting investors, with the country getting $6.13 billion foreign direct investment in the renewable energy sector from April 2020 till September 2023, according to the Department for Promotion of Industry and Internal Trade (DPIIT).
Attracted by India’s green energy transition trajectory, several green energy deals are in play as reported by Mint. This includes Sekura Energy Ltd, an energy sector-focused platform of Edelweiss Infrastructure Yield Plus Fund, being the front-runner to buy solar projects totalling 350 megawatts (MW) from O2 Power, with the deal likely to have an equity and enterprise value of $50 million and $200 million, respectively.
Also, NASDAQ-listed ReNew Energy Global Plc is in talks with Singapore’s Sembcorp Industries Ltd to sell solar energy projects totalling 350 MW, with the deal estimated to be valued at around $241 million at the enterprise level and around $121 million in terms of equity.