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This is an archive article published on February 12, 2025
Among biggest-ever renewable energy deals: ONGC-NTPC JV inks $2.3-billion deal for 100% stake in Ayana
ONGC wants to build a renewable energy portfolio of 10 gigawatts (GW) by 2030, while NTPC is looking at a renewable energy capacity target of 60 GW by 2032.
The deal, which is second only to Adani group’s $3.5-billion acquisition of SB Energy India from Softbank in 2021, is expected to aid ONGC and NTPC in achieving their respective emission targets. (Photo: X/ONGC_)
In one of the biggest-ever acquisitions in India’s clean energy space, ONGC NTPC Green Energy (ONGPL) on Wednesday inked the share purchase agreement for 100 per cent stake in renewable energy player Ayana Renewable Power for an enterprise value of Rs 19,500 crore, or $2.3 billion.
ONGPL is a 50:50 joint venture between green energy arms of public sector majors Oil and Natural Gas Corporation (ONGC) and NTPC, and this is the JV’s first strategic investment since being established in November last year.
The deal, which is second only to Adani group’s $3.5-billion acquisition of SB Energy India from Softbank in 2021, is expected to aid ONGC and NTPC in achieving their respective emission targets, and will contribute towards their ambitions in the green energy space. ONGC wants to build a renewable energy portfolio of 10 gigawatts (GW) by 2030, while NTPC is looking at a renewable energy capacity target of 60 GW by 2032.
“The deal aligns with the broader vision of its parent companies—ONGC and NTPC—to achieve net-zero targets by 2038 and 2050, respectively. ONGPL will now leverage Ayana’s platform for further expansion and growth,” ONGC said in a release.
The share purchase agreement between ONGPL and Ayana’s shareholders—National Investment and Infrastructure Fund (NIIF), British International Investment Plc (BII) and its arms, and Eversource Capital—was inked at the India Energy Week in the capital. Established by BII in 2018, Ayana attracted investments from NIIF and Eversource Capital in 2019, expanding its portfolio across solar, wind, hybrid, and round-the-clock power projects.
Ayana has around 4.1 GW of operational and under-construction assets, strategically located across resource-rich states. Its portfolio is backed by offtakers like Solar Energy Corporation of India (SECI), NTPC, Indian Railways, and Gujarat Urja Vikas Nigam (GUVNL). As per information available on Ayana’s website, the company aims to add 2 GW of renewable power capacity in the country every year
ONGC, JSW Neo Energy, and Sembcorp were in the fray for Ayana, and eventually JSW Neo Energy and ONGC submitted bids for the renewable energy company. ONGC, which outbid JSW Neo Energy, teamed up with NTPC for the acquisition. The tie-up with NTPC was done as ONGC wanted to mitigate acquisition risks, given that the oil and gas giant did not have expertise in the renewable energy sector, sources indicated.
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“India has committed to achieving Net Zero emissions by 2070 and developing 500 GW of renewable energy capacity by 2030. NIIF has played a pivotal role in scaling Ayana as one of India’s premier renewable energy platforms, supporting the Government of India’s vision for clean energy transition,” ONGC added.
In September 2024, the oil major had acquired renewable energy company PTC Energy for over Rs 900 crore.
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