Netherlands-based SHV Energy has appointed BNP Paribas to sell SunSource’s solar assets in a $100 million deal.

The transaction, which is in its early stages, involves the sale of 290 MW of SunSource Energy’s commercial and industrial operating assets and the basis for the full acquisition of the 300 MW financed pipeline once operational.

“The deal involves a combination of a secondary sale and a primary injection,” said one of the two people, who asked not to be named.

SHV Energy, which is involved in liquefied petroleum gas (LPG), liquefied natural gas (LNG) and clean energy, acquired a majority stake in SunSource Energy in May 2021. SunSource Energy was founded by Adarsh ​​Das and Kushagra Nandan in 2010.

Representatives for SHV Energy, SunSource Energy and BNP Paribas did not respond to queries emailed Oct. 22.

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India’s Green Way

The proposed deal comes amid strong investor interest in India’s commercial and industrial segment, Mint reported.

Thai energy company Banpu Public Co. Ltd, former US Vice President Al Gore’s Generation Investment Management’s Just Climate and Singapore’s CapitaLand Investment Ltd have been shortlisted to acquire Eversource Capital-backed Radiance Renewables Pvt. Ltd in a deal valued at approximately $325 million.

This investor interest also comes as India’s green energy trajectory is on the rise. India has the world’s largest renewable energy program, with Rs 8.5 trillion invested in the country’s renewable energy sector between 2014 and 2023.

The regulatory framework also supports the commercial and industrial segment: rules allow large electricity consumers to obtain energy from the open market rather than from the more expensive grid.

Commercial and industrial projects are also protected from risks such as reductions in electricity purchases by state power distribution companies. In addition, the introduction of time-based tariffs for large commercial and industrial customers by state electricity regulatory commissions has helped maintain investor interest.

Also read | India’s renewable energy boom stalled by regulatory uncertainty over sales agreements

India’s installed renewable energy capacity is 210 GW, including 90.76 GW of solar power and 47.36 GW of wind power.

Rajasthan, Gujarat, Tamil Nadu and Karnataka have taken the lead in setting up green energy projects with an installed capacity of 29.98 GW, 29.52 GW, 23.70 GW and 22.37 GW respectively.

In addition, the Union government is focusing on developing the manufacturing of solar cells and modules. India currently has a cell manufacturing capacity of about 10 GW and a module manufacturing capacity of 60 GW.

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