Tata Power, Adani Green Among Bidders for Statkraft India’s Renewable Biz

Power sector companies, including Tata Power, Adani Green, ReNew Power and Waaree Energies joined the race to acquire Norwegian renewable energy producer Statkraft’s India business. After joining the bidding race, nearly 15 suitors signed a non-disclosure agreement for the company on Wednesday, the Economic Times reported, citing sources. 

The Norwegian company is eyeing $1.5-2 billion for its India business, which has renewable energy generation capacity of 2 gigawatts comprising its operational and under-construction projects. The energy producer has operations across renewables, including solar, hydro, wind and hybrid power plants.

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Statkraft's Exit

The move will mark the exit of the Norwegian government-run Statkraft’s India unit after nearly two decades of operations in India. The company had first announced its exit move in October last year. In the announcement, the company had said it was focusing more on investments in its markets like Norway, Europe and South America. 

“Statkraft has a profitable portfolio of renewable energy assets in operation, and an attractive project portfolio and organisational capabilities in India. However, realising further sustainable growth in the country will require major investments,” global CEO of Statkraft, Birgitte Ringstad Vardtal had said earlier. Apart from Europe, the company will make more investments in South America as there are opportunities to scale business in the core capability areas of Statkraft, Vardtal added.

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The businesses will reportedly be sold in four chunks. The first will consist of wind and solar power assets in Rajasthan with 1.5 GW capacity and the second will comprise two operational hydropower plants in Himachal Pradesh. The third and fourth packages are hydropower plants in Himachal Pradesh and Uttarakhand, respectively. 

By the end of this month, when all the potential bidders will be asked to submit non-binding offers, they will have an option to bid for the entire business or four chunks.