A mountain of renewable assets is looking for buyers
Siemens Energy AG has said it plans to sell the India wind turbine unit of its subsidiary, while Shell Energy, which acquired Sprng Energy in August 2022 is looking for investors. EQT and Temasek are planning to sell the 4GW O2 power platform, while Macquarie has explored the sale of its solar power project Stride platform and C&I platform Vibrant Energy.
In all, 15-20 renewable companies are looking for investors. However, not all of them will find investors despite the rising interest in green power, multiple investment bankers familiar with the sector said, given the oversupply, and valuation mismatches.
Besides, they said the success of some transactions may create a new set of investors entering the segment, as well a greater interest in commercial and industrial assets (C&I). "Siemens Gamesa will concentrate on the core markets of Europe and the US, but will also serve other markets where profitable business is possible," a company spokesperson said about the wind turbine sale.
"The Indian market is fundamentally interesting for us; we have service obligations here that we will of coursefulfill," the spokesperson said. Many renewable energy companies are seeking funds to support growth, finance new projects, upfront investment and spur innovation as the sector booms.
“Not all renewable assets will attract investors, as success hinges on factors such as project viability, market conditions, and the risk-return profile," said Suman Bannerjee, chief investment officer at alternative asset manager Hedonova. Incoming investors will prioritize projects with strong financial projections, transparent regulatory routes and experienced management teams, Bannerjee said, adding the overall market sentiment and the performance
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