ReNew Power on Monday announced the acquisition of Ostro Energy, making itself the largest renewable energy company in India with a cumulative asset size of about 5,600 megawatts (MW).
ReNew Power currently has green energy assets of more than 4,500 MW, which include a commissioned capacity of about 2,800 MW. Ostro Energy has a total capacity of over 1,100 MW, out of which nearly 850 MW is already commissioned. “With the acquisition of these assets, ReNew Power’s capacity will now exceed 5,600 MW. Over 65 per cent of the combined portfolio capacity (ReNew Power and Ostro Energy) is already operational,” ReNew Power stated on Monday.
ReNew Power, which has its capacity diversified across wind, utility-scale solar and rooftop solar power-producing assets across India, did not dislcose the deal size. However, according to a source privy to the development, Ostro Energy has been acquired for Rs 10,200 crore. ReNew Power’s growth has been mostly organic till now. “This is the largest acquisition for the company till date and reinforces its already strong position in the Indian market,” it stated. Concurrent with this transaction, the Canada Pension Plan Investment Board (CPPIB) is investing an additional $247 million to support ReNew Power’s financing for this acquisition, ReNew Power added. It has an equity base of $900 mn, and has Goldman Sachs, US-based Global Environment Fund, Abu Dhabi Investment Authority, Asian Development Bank and JERA as investors. As a result, the CPPIB’s combined investment in ReNew Power now stands at $391 mn.