The RPSG Group is expanding its renewable energy footprint with a proposed Rs 4,859-crore acquisition of a 1.4 GWp solar portfolio from ReNew Solar Power. The portfolio includes six project special purpose vehicles with operating assets across Rajasthan and Karnataka.

Highlights:

• RPSG Group will acquire a 1.4 GWp operating solar portfolio from ReNew Solar Power for an enterprise value of Rs 4,859 crore.
• The deal will accelerate RPSG’s plan to build a 10 GW renewable energy platform, while increasing its operating capacity and recurring cash flows.

The acquisition comes as India’s renewable energy sector enters a period of consolidation, with companies increasingly using acquisitions to scale their portfolios rather than relying entirely on new project development.

For RPSG, the transaction gives its power arm CESC immediate operating scale and supports its ambition to build a 10 GW renewable energy platform over the next few years.

The deal will also increase the share of revenue-generating assets in its portfolio and strengthen recurring cash flows.

RPSG Adds Immediate Scale to Renewable Portfolio

CESC announced that it will acquire the 1.4 GWp operating solar portfolio through six project special purpose vehicles at an enterprise value of Rs 4,859 crore.

The transaction will significantly strengthen the renewable energy portfolio of CESC's arm, Purvah Green Power. Its contracted capacity will increase from nearly 3.4 GWp to around 4.8 GWp following the acquisition. Of this capacity, 1.8 GWp is already operational, while another 3 GWp is under construction at various stages.

Shashwat Goenka, Vice Chairman of RPSG Group, said the acquisition provides immediate operating scale and complements the company's existing pipeline of contracted renewable capacity.

The transaction also increases the proportion of assets already generating revenue. This gives the group stronger recurring cash flows while it continues to develop its under-construction projects.

The acquisition comes as RPSG targets a 10 GW renewable energy platform in the coming years, making scale-building through acquisitions an important part of its strategy.

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Renewable Energy Consolidation Gains Momentum

The RPSG-ReNew transaction is part of a broader increase in mid-sized renewable energy acquisitions in India. Several companies have turned to inorganic expansion to quickly add operating and contracted capacity as competition for renewable assets increases.

In June, Inox Clean Energy announced the acquisition of Vena Energy India's 6 GW renewable energy portfolio for around Rs 6,000 crore. It had earlier acquired Vibrant Energy from Macquarie Corporate Holdings for about Rs 5,000 crore.

The INOXGFL Group also acquired Wind World India's independent power producer and operations and maintenance businesses through an NCLT-approved resolution process for around Rs 2,775 crore.

Meanwhile, global investor Brookfield launched Lumara, a renewable energy platform in India that plans to invest around $600 million in solar, wind and battery storage projects. The platform has an initial portfolio of more than 6 GW.

Industry bankers expect consolidation to continue as companies look for faster ways to expand their renewable portfolios. Mid-sized transactions can also prove easier to finance and execute than very large acquisitions.

India's renewable energy opportunity remains significant. The country has crossed 300 GW of installed non-fossil electricity capacity and is targeting 500 GW by 2030. As capacity additions accelerate, acquisitions such as RPSG's latest deal could become an increasingly important route for companies seeking to build scale quickly.