Plummeting RE tariffs edge out small players even as bigger ones expand biz

The sharp drop in renewable energy tariffs is encouraging smaller players to exit even as larger ones look to innovative financing methods to expand their portfolios

Last month, Adani Green Energy Ltd (AGEL) signed an agreement with Japan’s SoftBank group and India’s telecom-to-real estate conglomerate Bharti to buy S B Energy for $3.5 billion, making it the largest acquisition in India’s renewable energy (RE) business.

This deal indicates the churn that is taking place in the sector that could see the emergence of four or five big players. This trend is likely to disrupt the financial markets as well with the emergence of newer financing instruments to support the growth of these large-scale players. Until recently, private equity (PE) was the preferred route for renewable energy