INOXGFL Group plans to sell majority stake in C&I business
grid. C&I projects are also shielded from risks such as power procurement curtailment by state-run power distribution firms.
Also, state electricity regulatory commissions (SERCs) have implemented time of day (ToD) tariffs—varying rates at different times of the day—for large C&I consumers, which has helped sustain investor interest and deal activity in the space as reported by Mint earlier.
Most recently, Serentica Renewables, promoted by Sterlite Power, has decided to sell a minority stake to raise around $300 million. Also, EverSource Capital-backed Radiance Renewables Pvt. Ltd has a formal mandate to Rothschild & Co. for the sale of its C&I platform. In addition, there is significant interest to acquire Macquarie Asset Management’s Green Investment Group platform Vibrant
Energy, which has a 1.5 GW portfolio in the C&I sector.
“The reasons for the increased adoption of renewable generation by the industry is largely driven by the theme of decentralization and decarbonization,” said Sanjeev Aggarwal, founder and chairman, Hexa Climate Solutions, adding that a combination of solar, wind, and batteries have made it possible for industries to use renewable power to reduce costs and carbon emissions.
“This theme has further been supported by the government policy of encouraging open access for consumers,” said Aggarwal, who set up Hexa Climate Solutions along with New York-based private equity fund I Squared Capital. The latter will invest around $500 million in Hexa, which will cater to the C&I sector.
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 government’s playbook is to add 50 GW of green energy capacity annually to reach 500 GW renewable capacity by 2030.
Also, India’s updated Nationally Determined Contribution (NDC) submitted to the United Nations Framework Convention for Climate Change (UNFCCC), has committed to achieve 50% of installed power generation capacity from non-fossil fuelbased energy sources by 2030.