Inox Clean Energy Limited makes a crucial move towards diversifying its clean energy resources by acquiring an operational solar power portfolio of 300 MWp from SunSource Energy Private Limited, further establishing itself in the rapidly growing clean energy market of India.
The acquisition has been made through Inox Neo Energies Limited, the renewable independent power producer (IPP) business division of Inox Clean Energy. Out of the total capacity acquired, about 250 MWp has already been acquired, while the remaining 50 MWp acquisition is pending, subject to approvals.
SunSource Energy is a wholly-owned subsidiary of the multinational company, SHV Energy, headquartered in the Netherlands. The solar assets that SunSource Energy has acquired include solar assets in operation across 13 Indian states, such as Uttar Pradesh, Karnataka, Tamil Nadu, and Maharashtra, among others.
Long-term Energy Supply for Creditworthy C&I Users
The solar projects are developed through various special purpose vehicles (SPVs) and sell their power through long-term power purchase agreements (PPAs) to the commercial and industrial (C&I) customers. As stated in the company, the weighted average tenure of the PPA stands at almost 24 years.
The customers include several prominent Indian and multinational companies in diverse sectors such as manufacturing, FMCG, healthcare, pharma, and power equipment. Some prominent off-takers include Britannia Industries, Jubilant Foodworks, Hitachi Energy, and Max Healthcare.
Industry experts have remarked that having long-term PPAs with reliable counterparties has become an ever more crucial stabilizing element for the renewable energy sector, especially against the backdrop of increasing commodity and market uncertainties.
Step towards 3 GW Renewable Capacity Target
The acquisition is an important step in the overall strategy of Inox Clean Energy to achieve the target of being an entity with renewable capacity of 3 GW of power by the end of FY26. It adds size to its existing portfolio of operational assets, thereby creating diversity in the customer base.
inox Clean Energy owns and operates the integrated renewable energy platform, where the company’s operations range from the generation of power to the production of solar products. Inox Clean Energy aims to develop a niche in the integrated renewable energy solutions domain.
Strengthening INOX GFL Renewable E
Inox Clean Energy is a part of the INOXGFL Group, whose diversified business segments include fluorochemicals, battery materials, and wind and solar manufacturing, along with renewable power generation. The company is venturing into the entire value chain of renewable sources of energy through its wholly owned subsidiary Inox Solar Limited and Inox Neo Energies Limited.
The acquisition is part of the overall move towards the clean energy transition being pursued by India as the country advocates for the use of solar as well as other renewable forms of energy. Due to an increasing demand in C&I consumers for reliable and sustainable power solutions, industry observers also believe that acquisitions in such portfolios will play an integral part in promoting renewable capacity additions and stability.
