Malaysia-based Yinson Renewables (S) Pte Ltd, a wholly-owned subsidiary of Yinson Holdings Berhad, has entered into multiple agreements to acquire a 37.5% equity interest in Rising Sun Energy Private Limited (RSE) with two operational solar projects in the Bhadla Solar Park in Rajasthan.
According to the company’s statement, Yinson will pay ₹554 million (~$6.67 million) for the stake. The company will also provide funding of ₹600 million (~$7.22 million) to repay certain outstanding liabilities of Rising Sun Energy.
As per the statement, the two solar projects with a generation capacity of 140 MW were commissioned in 2017. Rising Sun had signed the power purchase agreements with the National Thermal Power Corporation (NTPC). The PPAs will expire in 2042.
“This acquisition is a significant milestone for the company as it marks Yinson’s foray into renewable combined energy,” said Lim Chern Yuan, CEO of Yinson Group.
David Brunt, Yinson’s CEO for Renewables, pointed out that India is an important growth market for our renewables segment.
In an email, Brunt told Mercom, “We view the Indian renewable market as an important growth market and are excited to play a part in India’s renewable growth targets. India has done a fantastic job of putting the necessary infrastructure in place, which should facilitate opportunities for Yinson and RSE.”
Referring to the agreement, Brunt said, “This marks Yinson’s maiden venture into the RE market through the acquisition of 37.5% stake in RSE. Yinson is starting at a small scale and will grow in this new business segment.”
Arunav Sharma, the founder, and CEO of Rising Sun Energy, confirmed that Yinson would support RSE’s objectives to grow the business and become a leading renewable energy developer and operator.
In May 2019, Mercom reported that the Central Electricity Regulatory Commission (CERC) ruled in favor of three independent power producers regarding the payment of their performance bank guarantee to the tune of ₹255 million ($3.7 million). The three IPPs were: Rising Sun Energy Private Limited, Rising Bhadla 1 Private Limited, and Rising Bhadla 2 Private Limited. The three IPPs had petitioned the CERC seeking the release of the performance bank guarantees retained by the NTPC.
Earlier this year, the energy commission of Malaysia (Suruhanjaya Tenaga) awarded nearly 491 MW (490.88 MW) of large-scale solar projects to five companies. The winning companies were ib vogt GmbH and Coara Solar, Cypark Resources Berhad and Impian Bumiria, JKH Renewables and Solarpack Asia, ENGIE Energie Services and TTL Energy, and Konsortium Beseri Jaya and Hanwha Energy Corporation Singapore. The tender was issued in February 2019, by Suruhanjaya Tenaga to develop 500 MW of large-scale solar projects in Peninsular Malaysia.
Image credit: Fotowatio Renewable Ventures
Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.