Tata Power Renewable to secure $525mn from BlackRock, Mubadala-led consortium

By Arya M Nair, Official Reporter
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The Indian electric utility company, Tata Power and the US-based BlackRock Real Assets-led consortium, including UAE’s Mubadala Investment Company, have entered into a binding agreement to invest in Tata Power’s renewable energy subsidiary, Tata Power Renewables.

BlackRock Real Assets, together with Mubadala, will invest $525 million in the form of equity or compulsorily convertible instruments for a 10.53 percent interest, valuing the company at $4.46 billion. The final shareholding will range from 9.76 percent to 11.43 percent on final conversion.

This newly created platform will consist of five distinct businesses delivering long-term, customer-orientated solutions. It will house all renewable energy businesses of Tata Power including, Utility-Scale Solar, Wind & Hybrid Generation assets, Solar Cell & Module Manufacturing, Engineering, Procurement and Construction (EPC) contracting, Rooftop Solar infrastructure, Solar Pumps and Electric Vehicle Charging infrastructure.

The broad-based portfolio of assets ensures diversified yet stable revenue sources including 25-year fixed-price PPAs for grid-connected utility-scale projects. Tata Power Renewables is one of the largest renewable energy companies in India. Its vertically integrated operations currently have approximately 4.9GW of renewable energy assets.

Khaled Abdulla Al Qubaisi
Khaled Abdulla Al Qubaisi
Mubadala Real Estate & Infrastructure Investments

“As a responsible investor, Mubadala is focused on renewable energy in multiple markets, so we are delighted to invest in Tata Power Renewables to support energy transition efforts in India in partnership with Blackrock Real Assets. With a proven track record of green and clean energy generation and an experienced management team, Tata Power is one of India’s largest integrated power companies and is well-positioned to support the country’s energy independence and transition. We are proud to show our ongoing commitment to India with this investment and look forward to working with Tata Power to capitalize on the growth opportunities ahead.”

The proposed investment is expected to fund Tata Power Renewables’ aggressive growth plans. Over the next five years, Tata Power Renewables aims to achieve a portfolio of over 20GW of renewables assets and a market-leading position in the rooftop and electric vehicle charging space across India.

According to reports, India is one of the world’s largest renewable energy markets and has recorded the fastest growing renewable energy supply with over 60 percent new capacity added over the past four years. Its installed renewables capacity is expected to grow from 150GW currently to 500GW by 2030, to satisfy India’s local energy demand driven by GDP growth and contribute to the government’s decarbonization ambition, as well as support the macro energy transition trends in Asia and around the world.

Dr. Praveer Sinha, CEO and Managing Director, Tata Power Company, commented that “I am delighted to welcome BlackRock Real Assets and Mubadala to join us to take the renewables business to the next level of growth. The collaboration will support us to pursue exciting opportunities that lie ahead in the coming decades.”

Ms. Anne Valentine Andrews, BlackRock’s Global Head of Real Assets, said that “We are pleased to invest alongside Tata Power in this well-diversified and vertically integrated renewables business.”

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