Singapore-based renewable energy developer Equis Energy wants to sell its entire India portfolio, comprising green energy platforms Energon and Energon Soleq, two people aware of the development said.
The sell-off plan, an indication of growing consolidation in India’s green energy sector, is part of Equis Energy’s strategic review of its Asian renewable energy portfolio.
According to Livemint,Equis Fund has put up Energon and Energon Soleq for sale. It is seeing a lot of interest. The exercise is underway as part of their Asia portfolio strategy with them planning to run an auction process for the same. While Energon is focused on wind power projects with 414 mega watt (MW) of operating assets, Energon Soleq works in the solar sector and is developing projects totaling 260MW in Telangana and Karnataka. Additionally 300MW of capacity is also being developed.
This comes in the backdrop of declining green energy tariffs resulting in fewer clean energy deals because of concerns that electricity offtake commitments at higher tariffs may not be honoured.
As per information available on its website, Equis has raised around $2.7 billion in equity and started Equis Energy in 2012. The firm has 4.7 giga watts (GW) of renewable energy generation assets across Asia-Pacific, with an additional 6.3GW under development in Australia, India, Indonesia, Japan, the Philippines, Taiwan and Thailand.
Analysts have placed their bets on India’s green energy drive although some concerns such as weak finances of the state electricity boards and financing and execution risks remain.