Oil and Natural Gas Corporation (ONGC) is reportedly in discussions with NTPC Green Energy to form a consortium for a potential joint bid to acquire Ayana Renewable Power, owned by the National Investment and Infrastructure Fund (NIIF). According to sources familiar with the matter, ONGC and NTPC Green Energy are exploring various options, including a joint bid or individual bids, for Ayana Renewable Power, headquartered in Bengaluru.
Several prominent players in the renewable energy sector, including JSW Neo Energy, Sekura Energy, Masdar, Macquarie, and Sembcorp, have already submitted non-binding offers to acquire a controlling stake in Ayana Renewable Power. NIIF, which owns a majority stake of 51% in Ayana, is expected to shortlist bidders in the coming weeks, following which detailed due diligence will be conducted before final financial offers are submitted.
ONGC’s interest in Ayana Renewable Power aligns with its recent announcement regarding the establishment of ONGC Green, a subsidiary focused on developing renewable energy projects such as wind and solar power plants, as well as green hydrogen and green ammonia initiatives. Similarly, NTPC Green Energy has indicated plans for an initial public offering of shares in the fiscal year 2024-25 and has an existing joint venture with ONGC for the development of offshore wind energy projects.
Ayana Renewable Power boasts a robust portfolio of more than 4 GW of solar, wind, and hybrid power projects across multiple states, with operational capacity totaling 1.3 GW in Andhra Pradesh, Karnataka, and Rajasthan. Additionally, the company has 2.8 GW of projects under development, including firm power purchase agreements (PPAs) for 2 GW of assets and plans to commission a 300 MW wind power asset in the current financial year.
ONGC’s ambitious renewable energy targets, including plans to establish 10 gigawatts of renewable energy projects by 2030, underscore its commitment to transitioning towards cleaner energy sources and achieving net-zero carbon emissions by 2038, as announced by Chairman Arun Kumar Singh last year. As ONGC and NTPC Green Energy contemplate their bid for Ayana Renewable Power, the potential acquisition presents an opportunity for both companies to bolster their presence in the renewable energy sector and contribute to India’s transition towards sustainable energy solutions. With renewable energy becoming increasingly integral to the country’s energy landscape, partnerships and strategic investments in companies like Ayana Renewable Power are poised to shape the future of India’s renewable energy sector.
