In news that is still coming in, ReNew Power Ventures Private Limited, has just cemented its position as the biggest player in the renewable energy space by acquiring Ostro energy for a reported sum of Rs 10,800 crores. It’s a number that seems broadly in line with previous acquisitions that have been happening in the sector, especially for functional assets.
For ReNewPower, which had, in a way, marked the coming of age of the sector back in 2011 under its founder Sumant Sinha when it bagged a $200 million investment from investment bank Goldman Sachs, the deal adds heft to an already burgeoning project list, with a series of wind and solar assets of Ostro coming in.
The erstwhile leader in India at least had been Tata Power renewable Energy, which had become the leader in the space following its own acquisition of Welspun assets in 2016.
Ostro has already commissioned wind assets of 650 MW as per its website, with another 350 in the MW in the pipeline. It has also got a strong solar footprint, covering at least 6 major states in the country.
This is not RenNew’s first major acquisition in the rapidly consolidating space, where access to funding has become a key factor for growth, drawing both traditional corporates in, as well as a consolidation behind existing ‘strong’ players like ReNew.
There has also been talk of discussions between them and Waree technologies, a leading solar panel manufacturer . The deal, if it materialises, will provide an end to end presence for ReNew in the space, especially solar power. It is the area ReNew has favoured in recent months, and to that extent, makes sense, especially at a time when it looks clear that there might be a serious policy push in terms of tariffs support or concessions to encourage domestic manufacture of solar panels. Besides the massive growth expected in the run up to 20125, by which India has committed to having a massive solar led push for renewable energy.