Title: Power Titans Clash as Statkraft Opens Bidding for Its $2 Billion India Renewable Energy Portfolio

Overview

Norway's Statkraft, Europe’s largest renewable energy company, has officially entered the next phase of its strategic divestment by inviting bids for its India renewable energy business, valued between $1.5 billion and $2 billion. This move marks a significant shake-up in India’s renewable energy sector, with over a dozen major players and investment firms vying for a slice of Statkraft’s diversified portfolio, which spans solar, wind, and hydropower assets totaling 2 gigawatts (GW).

Statkraft’s India Exit: Strategic Refocus

In October 2024, Statkraft announced its decision to exit the Indian market as part of a broader strategy to concentrate investments in Norway, Europe, and South America. The company's global CEO, Birgitte Ringstad Vartdal, highlighted the need for significant capital to achieve sustainable growth in India, a direction the company prefers to pursue in South America instead due to better scale and competitive advantages. Statkraft has been a notable presence in India since 2001, pioneering foreign investments and acquiring power assets through innovative routes, including insolvency proceedings[1][3][4].

The Bidding Frenzy: Who’s in the Race?

Fifteen firms have signed non-disclosure agreements (NDAs) and are actively participating in the bidding process. The list includes key Indian renewable power giants and investment specialists:

• Tata Power
• Adani Green Energy
• ReNew Power
• Avaada Energy
• Waaree Energies
• Edelweiss Alternate Assets
• Gentari
• Energielis (promoted by Statkraft's former India head Rahul Varshney)
• KKR-backed Serentica Renewables
• Two public sector undertakings
• Three other investment firms[1]

While some companies, like Tata Power and Serentica Renewables, have remained cautious on public comments, the participation of such titans signals a high-stakes battle to expand footprint in India’s fastest-growing renewable energy market.

Statkraft’s Renewable Energy Portfolio Breakdown

To facilitate flexible acquisition options, Statkraft has divided its India operations into four distinct packages for sale:

| Package | Assets Included | Location | Capacity | |---------|---------------------------------------------|--------------------------|-------------------| | 1 | Wind and Solar Power Assets | Rajasthan | 1.5 GW | | 2 | Two Operational Hydropower Plants (Malana and Allain Duhangan) - Joint Ventures with LNJ Bhilwara Group | Himachal Pradesh | Not specified | | 3 | Single Hydropower Asset (Tidong) | Himachal Pradesh | Under Construction (150 MW) | | 4 | Single Hydropower Asset (Kedarnath) | Uttarakhand | Not specified |

Bidders can opt to acquire the entire portfolio or bid for individual packages. The packages cover operational and under-construction projects, ensuring a mix of immediate revenue generation and growth potential[1].

Renewable Energy Market Context in India

India’s commitment to expanding its renewable energy capacity is a major driver behind the intense interest in Statkraft’s assets. The country targets reaching net-zero emissions by 2070, underlined by aggressive solar and wind capacity expansion goals. This has created a highly competitive market for renewable assets, attracting domestic conglomerates, international investors, and infrastructure funds.

Investors are attracted by:

• India’s expanding grid integration of renewables
• Supportive government policies and incentives
• Attractive tariffs and long-term power purchase agreements (PPAs)
• Growing demand for clean energy driven by industrial and urban growth

The Statkraft sale thus offers a rare opportunity for buyers to secure a diversified, ready portfolio in strategic states like Rajasthan, Himachal Pradesh, Tamil Nadu, and Uttarakhand, regions important for India’s renewable targets.

Statkraft’s Indian Asset Highlights

• Solar and Wind Capacity: Around 1.5 GW, predominantly in Rajasthan and Tamil Nadu.
• Hydropower Plants: Significant operational hydro projects include Allain Duhangan (192 MW) and Malana (86 MW) in Himachal Pradesh.
• Development Pipeline: Projects like the Tidong hydro plant (150 MW) under construction, and additional solar projects in Tamil Nadu.
• Unique Acquisition Record: Statkraft was the first foreign firm to acquire power assets via India’s insolvency and bankruptcy code route, acquiring Lanco Mandakini Hydro Power in 2023[3][5].

Financials and Deal Expectations

Statkraft is targeting between $1.5 billion and $2 billion for the sale. The transaction is being facilitated by Ernst & Young (EY), who are managing the bidding and due diligence process. Non-binding offers are expected later this month, with shortlisted bidders likely to engage in detailed negotiations through mid-2025.

Industry Implications

For Statkraft

• Streamlining focus to Europe and South America will enable Statkraft to allocate resources to markets where it can scale rapidly.
• The sale supports Statkraft’s newly restructured organization, emphasizing technology, project delivery, and digital innovation in core regions[4].

For Indian Renewable Energy Sector

• The entry of new owners, particularly major Indian players and private equity firms, can accelerate sector consolidation.
• Fresh capital investment from buyers can boost project development, grid integration, and local employment.
• Potential for innovative hybrid projects combining solar, wind, and hydro assets to optimize energy output.

For Investors and Market

• The sale is one of the largest in the Indian renewable space this year, attracting global attention.
• Demonstrates India’s growing prominence as an attractive renewable investment destination.
• Highlights evolving asset monetization strategies among global renewables players.

Conclusion

The auction for Statkraft’s India renewable energy unit marks a key moment in the country's green energy journey. As power titans compete for the prized portfolio, the sale promises to reshape India’s renewable energy landscape. With a transaction size nearing $2 billion and a diversified mix of solar, wind, and hydro projects on offer, the stakes are high. This move not only exemplifies shifting global investment priorities but also underscores the vibrant growth and consolidation underway in India’s clean energy sector.

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Published on April 18, 2025