Saudi Arabia’s Alfanar Group is looking to sell a controlling stake in its 600-megawatt (MW) wind power assets portfolio in India for around $300 million, said two people aware of the development, requesting anonymity. Alfanar Group has a clean energy portfolio of 1.4 gigawatts (GW) across West Asia, Africa, Europe and Asia, and is also seeking capital commitment for future greenfield projects.
The Riyadh-based group had won two wind power projects auctioned by the state-run Solar Energy Corp. of India (SECI). In February 2018, it placed a winning bid of ₹2.45 per kilowatt-hour (kWh) and followed it up by picking up another project with a bid of ₹2.77 per kWh in October 2018, for developing 300MW wind projects each.
Mint had earlier reported that Alfanar Group was looking to sell half of its 600 MW wind power projects in India and had appointed JM Financial to find a buyer.
When contacted, an Alfanar group spokesperson in an emailed response said: “As per our company policy we do not engage in responding to speculations.”
Queries emailed to a JM Financial spokesperson on 10 April remained unanswered till press time.
India is running the world’s largest clean energy programme and seeks to have an installed capacity of 175 GW by 2022. It has an installed wind power capacity of 38.78 GW, with plans to reach 60 GW by March 2022, as part of the country’s climate change commitments.
Some of the largest wind power projects in India are owned by Goldman Sachs-backed ReNew Power Ventures Pvt. Ltd, GIC Holdings Pte. Ltd and Abu Dhabi Investment Authority (ADIA)-backed Greenko Energy Holdings, Tata Power Renewable Energy Ltd (TPREL), Rahul Munjal-led Hero Future Energies Pvt. Ltd. Mytrah Energy India Pvt. Ltd and CLP India Pvt. Ltd, one of the largest foreign investors in the Indian power sector.
Despite the pandemic, deal making in India’s green energy space continues unabated. The most recent deal involves Canada Pension Plan Investment Board closing on to take a controlling stake in SB Energy Holdings, which has a 7.7GW solar power portfolio, for an estimated $525 million from SoftBank.
Private equity firm Actis Llp also plans to invest $850 million in India to build two green energy platforms, as reported by Mint earlier. The first platform will focus on setting up grid-connected solar and wind power parks, while the second will cater to the expanding commercial and industrial sector.
Growing investor interest follows India’s commitment to set up 450GW renewable energy capacity by 2030. So far, it has an installed capacity of 89.63 GW, with another 49.59 GW under execution.
Over the past six years, ₹4.7 trillion has been invested in India’s green energy space. It expects an annual investment of ₹1 trillion till 2030.