EQT- and Temasek-backed O2 Power is in talks with Jakson Group to purchase 120 MW of solar power assets of Jakson Group at an equity value of ₹130 crore, said two people aware of the development.
The enterprise value of the transaction is likely to be around ₹550 crore.
“Jakson has signed exclusivity agreement with O2 Power and due diligence is on as of now for transaction. The transaction is expected to be done at an equity value of ₹ 130 crore,” said one of the persons cited above.
Queries sent to Jakson Group and O2 Power remained unanswered till press time.
The diversified Jakson Group has an IPP (independent power producer) portfolio of over 200 MW across several states.
Its services range from bidding for solar power projects, the commissioning of the plant as well as O&M.
Last year, the company had said that Virescent Renewable Energy Trust (VRET), which is now set to be taken over by India Grid Trust, would purchase about 100 MW of solar power portfolio from Jakson Group for around ₹400 crore.
The proposed sale of solar power assets to O2 Power comes at a time when the company is focussing on solar module manufacturing, EPC (engineering, procurement and construction) projects and newer sectors in renewable energy.
In July last year, Jakson announced its new venture Jakson Green Pvt Ltd (JGPL), to focus on green hydrogen and ammonia, waste to energy, electrolyzers and fuel cells, utility-scale battery energy storage systems, solar and related operation and maintenance services across these lines of business.
The talks for acquisition of solar power assets is in line with O2 Power’s aim to achieve over 4 GW of renewable energy projects through utility scale and commercial & industrial projects in the country. Its current green energy porfolio stands at over 2 GW of current green energy portfolio, O2 power aims to install over 4 GW of renewable energy projects through utility along with commercial and industrial (C&I) projects in the country.
Founded in November 2021, O2 Power last August acquired a 55-MW portfolio of solar power plants from Bangalore-based solar panel manufacturer, Emmvee Photovoltaic Power Pvt Ltd. The plants are located in Karnataka and Telangana.
Investments in green energy assets have picked up in the country in the past few years given the focus on decarbonization and Centre’s focus on achieving 500 GW of installed renewable energy capacity by 2030.
With current installed green energy capacity of 172.542 GW, India stands fourth globally in renewable energy installed capacity, and fourth in terms of both wind and solar power capacity.
Installed solar power capacity in the country stands at 67.078 GW, which is 16.1% of the total installed capacity.
