Bank of America (BofA) has been chosen by Macquarie Asset Management, one of the major foreign infrastructure investors in India, to sell about 450 megawatts (MW) of solar power projects for an equity value of about $250 million. The 330MW of operating solar assets that were purchased from Hindustan Power Projects Pvt Ltd are anticipated to be put up for sale in the near future. The majority of these projects receive prompt payments while providing power to Gujarati government-owned electrical distribution corporations at a higher rate.
The goal is to sell the 450MW solar projects at a premium, according to one of the two sources mentioned above who asked to remain anonymous. Spokespeople for BofA and Macquarie declined to comment. The change occurs at a time when India's per-person energy usage has increased to 1,255 kilowatt-hours (kWh). India's power demand reached an all-time high of 211.6 GW in June 2022, and it is predicted that it will reach 225 GW this summer. The current fiscal year's electricity demand is anticipated to increase by 9.5%, with peak demand rising by 6.82%. The goal is to sell the 450MW solar projects at a premium, according to one of the two sources mentioned above who asked to remain anonymous. Spokespeople for BofA and
Macquarie declined to comment. The change occurs at a time when India's per-person energy usage has increased to 1,255 kilowatt-hours (kWh). India's power demand reached an all-time high of 211.6 GW in June 2022, and it is predicted that it will reach 225 GW this summer. The current fiscal year's electricity demand is anticipated to increase by 9.5%, with peak demand rising by 6.82%.
India is undergoing a tremendous energy revolution that also entails taking advantage of vast landmass and affordable solar and wind energy to export low-cost green hydrogen and ammonia, which is luring in foreign investors. The National Green Hydrogen Mission, which will create 5 million metric tonnes of emission-free fuel annually by 2030, was approved by the Union cabinet in January.
Aditya Birla Group appointed Standard Chartered to sell a 49% stake in its renewable energy business for approximately $400 million as a result of the enabling environment. The ACME Group, India's largest pure-play solar platform, gave a formal mandate to Rothschild and Co. to sell a stake in ACME Cleantech Solutions for $500 million.
Torrent Power Ltd, based in Ahmedabad, is in negotiations with ReNew Energy Global Plc to purchase 1.1 GW of operating sustainable energy assets for $1.2 billion. Also seeking to invest in Hyderabad-based Fourth Partner Energy Pvt. Ltd. is Alberta Investment Management Corp., Ontario Municipal Employees' Retirement System, Brookfield Asset Management Inc., and I Squared Capital. Continuum Green Energy (India) Pvt. Ltd. has an enterprise value of $1.5 billion, and Petronas, Sembcorp Industries, JSW Neo Energy, BP Plc, Norway's state-run energy company Statkraft, and I Squared Capital are interested in buying it.
The massive addition of green energy to India's energy mix will also contribute to the nation's goal of achieving net-zero carbon emissions by 2070 and a 45% decrease in carbon intensity from 2005 levels. India has made a significant effort to upgrade its power transmission network in addition to its drive towards green energy. With the addition of approximately 173,459 circuit km of transmission lines to the national power system, the nation now has the ability to transport 112 GW of electricity from one region to another.
