Global Power Synergy Plc (GPSC), a power generation arm of Thailand's national oil and gas conglomerate PTT Group, has paid 14.82 billion baht to acquire a 41.6% stake in Avaada Energy Private Co (Avaada), one of the leading renewable energy companies in India.
GPSC invested ithrough its subsidiary Global Renewable Synergy Co (GRSC), which has already completed the acquisition of the 41.6% holding of an approximately 3,744 megawatts (MW) solar power portfolio.
The deal expands its renewable energy portfolio in line with the group's renewable energy target of 8,000 MW in 2030.
Avaada's current committed capacity is approximately 3,744 MW, of which about 1,392 MW are from operating plants, with the remaining 2,352 MW to come from other plants under construction. The new plants will gradually begin commercial operations in 2021 and 2022.
Avaada plans to expand its renewable energy capacity to 11,000 MW by 2025.
PTT president and chief executive Auttapol Rerkpiboon said on Wednesday that the partnership showed PTT Group's commitment to sustainable business in line with the energy transition trend towards the net zero carbon emissions.
This investment in India supported a policy of the country to encourage investment in renewable energy in many forms in India, which has a population of more than 1.3 billion.
"The investment in this platform aligns with the company's growth strategy in renewable energy business internationally and enhances the company's expertise in solar power generation as well as business collaboration in the area of renewable energy business in the future," said Mr Auttapol.
Bank of America advised Avaada Energy on the transaction while GRSC was advised by Barclays.
The expansion of investment in renewable energy totaling 3,744 MW of this project, at full capacity, will help avoid the emission of greenhouse gas by around 4.3 million tonnes of carbon dioxide equivalent per year, the statement said.
Mr Auttapol said the joint venture between GRSC and Avaada Group was a significant business move, as it would expand PTT Group's renewable energy capacity to 8,000 MW by 2030, allowing us to accelerate on the road of clean energy for low-carbon society and leading to the development of sustainable energy together.
Worawat Pitayasiri, GPSC president and CEO, said the partnership would raise GPSC's renewable energy capacity to 2,145 MW or 32% of the total capacity of 6,613 MW. This will increase together with Avaada's target of expanding capacity to 11,000 MW in 2025.