Adani Green Energy Mulling Over Obtaining Rest of Essel's Solar Assets

• Adani Green Energy is allegedly considering acquiring all of the remaining solar power assets of the Essel Group.

Adani Green Energy (AGEL) is reportedly thinking about the option of acquiring all of the remaining solar power assets of the Essel Group. Based on media reports, the Essel Group has reached an agreement to sell the remaining 480 MW (presently under construction) to Adani Green Energy. The selling of solar power assets as part of Essel Group promoters' overall divestment process to decrease debt and repay creditors.

AGEL is among the biggest renewable energy generation businesses. The firm has a total renewable energy portfolio of 5,290 MW, where 2,320 MW is usable across eleven states in India, and also a further 2,970 MW is under construction.

In August, AGEL declared it had signed a securities purchase agreement for its purchase of 205 MW operating solar assets of Essel Green Energy Private Limited (EGEPL) and Essel Infraprojects Limited (EIL). The purchase of those assets is at an enterprise valuation of roughly Rs 1,300 crore.

According to the official announcement, the solar projects are in three states - Punjab, Karnataka and Uttar Pradesh. And all of them have long-term Power Purchase Agreements (PPA) with different state power distribution businesses. The portfolio is relatively young with an average remaining PPA lifetime of about 22 years.

Jayant Parimal, CEO of Adani Green Energy, stated at the time that the purchase of 205 MW of solar resources would strengthen the company's position as one of India's greatest renewable energy producers with a total portfolio of ~5.5 GW, of which ~2.5 GW is functional, along with the remaining is to be operationalized within the subsequent two years.