Ayala, UPC Renewables JV to sell stake in 1 GW projects in $600 mn deal

Yeni Delhı: The joint venture of the Philippines’ agency and the UPC regenerator of Ayala Corporation plans to sell an important share in the 1 Gigawatt project in India.

In the event of anonymity, the transaction includes the evacuation of up to 74% of the three public service -scale renewable energy projects in India. The O, the sales process for the agreement is carried out with a equity value of approximately $ 200 million.

One of the previously quoted people said, “The next stage includes the signing of the confidentiality contracts, the sharing of the financial model and the memorandum of the information, and then the management discussions and presenting non -binding proposals.” “Later, the bidder, which is on the short list, will be called to send their binding offers.”

Among the projects, 420 megawatt (MW) solar energy project in the Barmer region of Rajasthan, a 100 MW wind project in Karnataka; And until 2027, 520 MW Wind and Sun Hybrid project.

The agency has a global operational 3.3 Gigawatt (GW) portfolio and another 3.7 GW, while the UPC Renewables has a capacity of 10 GW assets. The joint venture Indian Green Energy Platform – OPC renewable creatures – Madhya Pradesh on the 420 MW table, solar energy, 70 MW Paryapt Güneş in Gujarat and 140 MW Sitara Solar in Rajasthan has an operational capacity of 630 MW.

In a response sent by e-mail, a spokesman said, iz We cannot comment on company-specific issues. ”

Atala Corp. late on Wednesday night, the interrogations sent to the spokespersons of the agency, UPC renewable products and on Thursday morning UPC Renewables India remained unanswered until the press time.

The JV Platform has started to work on these future projects.

“Agencies, UPC in partnership with renewable energy, began to build two major renewable energy projects in India: a 420 MW solar farm in Rajasthan and a 120 MW wind farm in Karnataka.” He said.

Alok Nigam, CEO, India’s green energy transition for the next two years to surrender and India’s green energy transition to play a significant role, we aim to play a significant role, the construction of the 500 MW+ Sun and Wind Projects with the construction of the UPC India’s platform is excited to start the second stage. ” He said.

Given the Green Energy Sector of India, the country’s clean energy transition orbit has witnessed a tremendous interest.

The Central Electricity Authority (CEA) envisaged the highest demand of 270 GW this year at the highest level of all time of 250 GW recorded on May 30 last year. India, solar and wind energy are 110.9 GW and 51.3 GW, respectively.

India aims to add 50 GW green energy capacity annually to reach 500 GW by 2030.

Power demand, pricing difficulties

However, the industry is also faced with concerns. Solar energy tariffs fell and India’s demand for power in the first six industrialized provinces of India became flattened in April and cooled in May. The sector also faces power transmission evacuation restrictions, while states do not carry out power purchasing and supply agreements for the projects given due to a decrease in tariffs in the subsequent proposals.

In May, an unprecedented market fork observed an unprecedented market fork: Spot prices for electricity during sun hours La0/unit, non -polar peak clock prices grazed La10/Unit Ceiling, SBI Capital Markets Ltd’s May reports. “This deviation emphasizes an extreme case for ESS’s economic viability and practical necessity (energy storage system). By accepting this, the 25% of the Re -tenders given in 25 financial years, a significant decrease in 78% in the FY20, is only neglected, although only 150 GWH was swimming.”

Mint Previously, renewable power capacity, which was 30 GW in total, could not find buyers; At least 15GW capacity has not yet found PPAs, while at least 14GW PSAs are waiting.

Rating Agency ICRA said that India’s demand for power may grow by 5-5.5%. Although it is higher than 4.2% in FY25, it will be slower than 7-9% growth during the 22 FY24 period, which is the period following the pandem.

Storage, financing barriers

Considering that the sun and wind are disabled energy sources, a renewable capacity of 500 GW by 2030 without adequate storage may threaten the stability of the grill due to a decrease in cloud cover, rain or wind rate. The national power network faces warnings due to a sudden decrease in solar energy production, which leads to a decrease in several grid frequency. Sudden changes in the demand pattern affect the grid frequency.

“On the transmission side, a long -term strategy is implemented for evacuation infrastructure within the scope of the country’s national electricity plan. Any material delay can lead to bottles and potential power abbreviations,” Standard & Pocial Services LLC said in the 4 June report.

“In renewable energy, in order to address the intermittentness of the power supply, the June 9 report ~ 75 GW capacity ~ 75 GW capacity ~ 75 GW capacity ~ 75 GW capacity to facilitate the planning of the capacity of hybrid or storage support.

“In renewable energy sources, the timely existence of the evacuation infrastructure is critical. To make sure, a significant increase in transmission capacity continues with the total capital expenditure (CAPEX). La1 Lakh Crore is twice the financial and the next, the previous two financial years. These projects may face delays due to short equipment supply, such as transition rights problems, delayed approvals or transformers and high -voltage direct current components. In addition, since the establishment of renewable capacities takes a much less time, the transmission capacity may be temporarily short. ”

Then India has a problem with major financing in the green energy passage.

Kotak Corporate Stocks Research said in the June 20 report that India will require cumulative clean power investment until 2035 in the cumulative clean power investment of $ 1.3 trillion to meet its 2070 Net-Zero target.