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Masdar, SembCorp, JSW keen on Enel portfolio: report
Companies have submitted non-binding bids to buy the 760 MW of operational assets at an enterprise value of $500 million
The UAE’s Masdar Energy, Singapore’s SembCorp, JSW Energy, Torrent Power, Sekura Energy, and ONGC Ltd are among the suitors for Italy-based Enel Group’s renewable energy portfolio in India, The Economic Times reported citing unidentified people aware of the development.
The companies have submitted non-binding bids to buy the 760 megawatts (MW) of operational assets at an enterprise value of $500 million, or ₹4,100 crore, the report said, adding that HSBC is advising Enel group on the sale.
Enel’s Indian portfolio comprises 760MW of operational wind and solar power assets and a development pipeline of 2 gigawatts (GW). Of the operational capacity, solar accounts for 420MW, and the rest is wind power.
Enel Group, through its Indian subsidiary for renewables Enel Green Power India, and Norfund, the Norwegian investment fund, had signed a long-term deal to jointly fund, build, and run new renewable projects in India in July 2020. Both companies announced the 420MW Thar solar project in 2022.
Last year, Norfund-run Norwegian Climate Investment Fund and KLP, Norway’s largest pension fund, committed $100 million of equity and guarantees for a 168MW wind power plant developed by Enel Green Power India.
Established in 2008, Enel Group is present in Europe, Asia, Africa, Oceania, and the US, and is involved in developing and managing renewable power projects. Globally, it operates over 63GW of installed renewable capacity of 1,300 plants globally.
Earlier this year, Enel Group’s subsidiary Enel Green Power North America Inc. signed an agreement with ORMAT Technologies Inc. to sell a renewable asset portfolio in the US for a total consideration of $271 million, or about €250 million.
The assets sold include EGPNA’s entire geothermal portfolio and several small solar plants, with a total capacity of about 150MW of operating plants. Enel Group shared in its release that this deal was expected to lead to a positive effect on the Enel Group’s consolidated net debt of about €250 million and a negative impact of around €30 million on the Group’s net income while bearing no effect on Enel Group’s ordinary economic results.
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