Macquarie, RPSG Group Eye Welspun New Energy Deal

The race to acquire Welspun New Energy (WNEL), the renewable energy arm of Welspun Group, has narrowed to its final contenders: Macquarie and the RP Sanjiv Goenka (RPSG) Group. This high-stakes transaction is now in its concluding phase, with the potential enterprise value of WNEL estimated at approximately Rs 2,000 crore.

This potential sale represents a strategic pivot for Welspun, echoing its previous divestment of a 1.14 GW renewable energy portfolio to Tata Power Renewable Energy a decade ago for roughly Rs 10,000 crore. Such moves highlight a dynamic landscape within India’s burgeoning green energy sector.

WNEL’s Current & Future Energy Footprint

• Operational Portfolio: Approximately 45 MW of renewable energy.
• Under Construction: A 245 MW wind-solar hybrid project located in Gujarat.
• Pipeline Projects: Includes a 700 MW wind-solar-plus storage pipeline.
• Future Goal (by 2030): Expand renewable energy capacity to 5 GW and produce 2 MTPA of green derivatives like ammonia and methanol.

Significantly, Tata Motors recently secured a power purchase agreement with Welspun Renewable Energy, a WNEL unit, for an 86 MW wind-solar hybrid project. This initiative aims to supply clean power to four of Tata Motors’ manufacturing facilities across India, underscoring WNEL’s market relevance.

WNEL’s broader project pipeline currently stands at 1.5 GW, encompassing solar, hybrid, and solar-plus-battery energy storage system (BESS) projects. The company’s operational capacity, recorded at 45 MW at March-end, is projected to surge more than sevenfold to 325 MW by September with the commissioning of additional capacity under its subsidiary, Mounting Renewable Power Ltd (MRPL).

These operational and near-term MRPL projects are largely underpinned by long-term Power Purchase Agreements (PPAs) with Welspun Group entities. Future ventures are anticipated to secure agreements with prominent counterparties such as Gujarat Urja Vikas Nigam and Solar Energy Corporation of India (SECI), thereby enhancing revenue stability and mitigating credit risk.

Broader Sector Dynamics

The RP-Sanjiv Goenka Group’s renewable energy arm, Purvah Green Power, has also been actively expanding its footprint. They recently acquired a 1.4 GW operating solar portfolio from ReNew Solar Power for Rs 4,859 crore, which boosted their total contracted renewable capacity to 4.8 GW.

• Purvah Green Power’s Ambition: Aims to achieve a capacity of 10 GW in the coming years.
• India’s Global Standing: Holds the third position globally in installed renewable energy capacity.
• Recent Capacity Addition: Added 55.3 GW of non-fossil fuel capacity in FY26.
• Total Installed Capacity: Reached 283.46 GW.

The intense competition for WNEL, alongside substantial investments by players like RPSG Group, signals a robust and rapidly consolidating renewable energy market in India. This trajectory aligns with the nation’s broader clean energy goals, positioning India as a global leader in sustainable power generation.