Key Takeaways
- Blackstone has made a non-binding $1.5 billion offer for Statkraft’s Indian arm, which includes a 2 GW renewable energy portfolio.
- This marks Blackstone’s first exploration into renewable energy acquisitions in India, competing with several major firms.
- Statkraft aims to exit the Indian market, having started operations there in 2001, focusing instead on investments in Europe and South America.
Blackstone, managing a $50 billion investment portfolio in India, has submitted a non-binding offer of $1.5 billion for Statkraft’s Indian unit, which operates a 2 gigawatt renewable energy generation portfolio. This move represents Blackstone’s initial foray into renewable energy acquisitions within India, as the asset manager recently concluded a global energy transition fund raising $5.6 billion.
The offer comes with backing from Statkraft’s global board based in Norway and faces competition from several other contenders, including KKR-backed Serentica Renewables, Sembcorp, and BlackRock. These companies have already invested significantly in renewable energy in India and are considered strong competitors in the bid for Statkraft’s assets.
A law firm is expected to deliver a due diligence report this week, post which the bidders will present their final offers. Statkraft, recognized as Europe’s largest renewable power firm, announced its decision to exit the Indian market last October, citing a strategic shift to concentrate on investments in Norway, Europe, and South America.
Statkraft’s renewable energy assets in India are distributed across multiple states and harness energy from wind, hydro, and solar sources. To facilitate the sale, Statkraft has organized its Indian unit into four packages. The first includes wind and solar power assets located in Rajasthan, boasting a combined capacity of 1.5 GW. The second package consists of two operational hydro power plants in Himachal Pradesh, named Malana and Allain Duhangan, which function as joint ventures with India’s LNJ Bhilwara Group. The final packages feature single hydropower assets situated in Tidong, Himachal Pradesh, and Kedarnath in Uttarakhand.
As the competitive landscape evolves in India’s renewable energy sector, Blackstone’s offer signifies a notable shift, considering its enhanced interest following recent fundraising efforts. Industry experts are keenly observing how the bidding process unfolds among established players, making this acquisition an important development in reinforcing renewable energy investment within the region.
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