Japan’s Orix to Acquire 20% Stake in Indian Renewable Developer Greenko at $980 Million

Orix will integrate its wind portfolio in India with Greenko

September 14, 2020


Orix Corporation, a Japan-based financial services group, announced that it had signed a framework agreement with renewable energy project developer Greenko Energy Holdings, to acquire approximately 20% of its shares.

Orix said that it would acquire over 20% of Greenko’s shares at a total value of around $980 million (~₹ 72.07 billion). As part of the agreement, the company would also add 873 MW of its wind energy portfolio in India into Greenko’s portfolio in exchange for the shares.

Last year, Mercom had reported that Orix Corporation was set to acquire a 51% stake in seven wind power generating subsidiaries, which it jointly owned with Infrastructure Leasing & Financial Services Wind Energy Ltd (IWEL). IWEL is the wholly-owned subsidiary of IL&FS Energy Development Company Limited, which, in turn, is a subsidiary of Infrastructure Leasing & Financial Services Limited, a Telangana-based infrastructure development and investment company in which Orix has a significant share.

Orix owned 49% shares of seven special purpose vehicles developing its wind power generation business in India. These seven SPVs operate wind power projects with a combined capacity of 873 MW in seven states, mainly in the southern and western parts of India, where wind conditions are particularly favorable.

The latest transaction is expected to be completed by the end of the year.

Singapore’s Government Investment Company (GIC) and the Abu Dhabi Investment Authority (ADIA) currently hold 65.8% and 16.5% of Greenko’s shares, respectively.

Greenko has a renewable energy portfolio with a total operating capacity of 4.4 GW in India. It has long-term power purchase agreements with state-owned power companies, India’s government-operated agencies, and other organizations.

According to Mercom’s India Solar Project Tracker, Greenko has 1.2 GW of large-scale solar projects in-operations and around 1 GW of projects are under development pipeline.

In June 2020, the government of Andhra Pradesh approved the establishment of an integrated renewable energy project at Pinnapuram village in Kurnool district by Greenko Energies. As part of this plan, Greenko was to set up a 1 GW solar project, a 550 MW wind project, and 1.2 GW of standalone pumped storage capacity.

Last month, NTPC Limited announced that its wholly-owned subsidiary NTPC Vidhyut Vihar Nigam Limited, signed a Memorandum of Understanding with Greenko Energies to explore opportunities to supply round-the-clock renewable energy.

Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.

More articles from Harsh Shukla.