In this News Flash: ReNew Power forms a joint venture with Gentari Renewables targeting 5GW in renewable energy in India. Capital Energy plans to sell its 4.3GW portfolio of onshore wind and solar project in Spain along with 48 projects that are ready for construction. RES, the world’s largest independent renewable energy company, will acquire Ingeteam’s Renewable Service division.

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News Flash 7 August 2023

Allen Hall: I’m Allen Hall and I’m here with my Uptime co-host, Joel Saxum and this is your News Flash. ReNew Power and Gentari Renewables India are forming a 50/50 joint venture in clean energy solutions. The joint venture aims to achieve a target of five gigawatts in renewable energy capacity in India, focusing on solar, wind, and energy storage.

Gentari Renewables India is a subsidiary of Malaysian clean energy solutions provider, Gentari, which is part of Malaysia’s state owned oil and gas major Petronas. Gentari’s initial investment for a 49% equity stake in ReNew’s 403 megawatt Peak Power Project in May, 2023, led to this collaboration. So Joel, this is a, a, a, a really unique collaboration in India for renewable power. ReNew is, is just a huge renewable energies company, and Gentari is headed that way. So this is fascinating where two really powerful companies are joining forces again to increase their scale. 

Joel Saxum: Yeah. You know, in India there’s a lot of different regions that have really good wind resource.

So as, as Rosemary talks about on the show a lot is that, you know, if you have wind resource, it’s all tied together. You know the wind blows the same. If the wind shuts down, it shuts down for the whole region. That’s problematic. In India, they don’t have that problem. So they have a lot of different regions and, and as we know plagued for power production there in India.

So this is great for the country of India and the, the economy over there as well to have a couple of big players invest in some money and build some assets. 

Allen Hall: So the partnership with Gentari will expand ReNew’s energy portfolio and they’re planning on having 30 gigawatts of renewable energy capacity by 2030.

So that’s pretty massive. Over in Spain, spanish based renewable energy investor, Capital Energy plans to sell a portfolio of 4.3 gigawatts of onshore wind and solar power plants in Spain. The portfolio is estimated to be upwards of 1 billion US dollars, but you know, it’s subject to due diligence of the projects, obviously.

The sale known as Project One includes 48 projects ready for construction within 15 months, and a couple other solar sites of, of almost about a gigawatt. So there’s a lot of assets in this that Capital Energy is planning to sell. Again, Joel, it seems like a lot of existing renewable energy providers are selling their existing portfolio to move to the next generation of portfolios.

Yeah. 

Joel Saxum: Taking that capital and reallocating it. Right. So they, these, these wind farms are up and running. They’re good to go. But this is a little bit different because Capital Energy here is also selling some of their pipeline. So the, the pipeline of construction projects ready for you know, getting, getting closer to shovel ready.

And that’s something different than we’ve seen in the US right? When we saw, say Duke Energy sell their assets. It was all operating wind assets, you know, considerations for due diligence. You can do that on the wind operating assets. And then you go ahead. A lot of this is done on plans and good faith. So they’ve done the groundwork of getting the permits ready, getting them maybe some civil work done and talking with stakeholders at the government level and the interconnections.

But they haven’t actually built some of these projects, so that’s a little bit different. 

Allen Hall: Well, in, in this transition and then in the sale, they’re gonna offload 45 of their employees from Capital Energy. So, Along with the assets you get the people that are running the assets. Obviously Capital Energy is a much larger company than that, right?

But if you’re buying this asset, you’re not just buying the asset, you’re actually buying the people knowledgeable to run them. And I think that may be a little unique and and smart. 

Joel Saxum: Yeah. But it’s the same. It’s the same thing, right? They’re, they’re gonna sell some assets. Build some capital and then take it and redeploy it, right?

‘Cause they’ve got a renewable portfolio, Capital Energy does of 25 gigawatts with 10 gigawatts in advanced development and access to the Spanish power network. So all the problems that we talk about in interconnection here in the US, they’ve got access to it, they’re ready to go. So some big moves being made in Spain.

Allen Hall: Well, RES, the world’s largest independent renewable energy company will acquire Ingeteam’s renewable service division. Upon the completion of the acquisition, RES will manage 30 billion pounds, roughly 35 billion euros of assets, and become the largest renewable energy support services provider.

Globally, Joel,

Joel Saxum: Big time moves here. I read somewhere on LinkedIn and I think it was a post from the CEO of RES that it was over 4,000 employees in Ingeteam’s renewable service division that they were taking on. 

Allen Hall: Okay. That’s, that’s a merger of scale. 

Joel Saxum: Oh, absolutely. Absolutely. So there is quite a few players in this space, right?

You get your Deutsche Windtechnik and quite a few others. That are doing full service. Like when we talk with Phil Totaro about who’s managing the assets, is it a full service agreement done by the OEM, is the asset owner doing themselves? The third option is to have someone like RES fully run your program, right?

RES does other things. They’ll do major correctives, you know, ad hoc and some other other, other sides of the value chain. They’ll also do developments and help companies with developing. However, one of the big things, and I think where they’re gonna get a lot of stuff from a lot of revenue from Ingeteam is

in having this full service ISP, where, hey, we can take basically, Full service agreement on of assets and manage the whole thing from start to finish. 

Allen Hall: Obviously, the acquisition is there to support existing customers and provide more information from Ingeteam on the sort of ma asset management side.

But looking at the total adjustable market for support services, they’re estimating 2.4 terawatts by 2030, with half of that being solar and half of that being wind. Wow. The, the scale of this is enormous. 

Joel Saxum: Yeah. And right now there have, they’ll have 35 gigawatts of O&M services, asset management contracts worldwide.

Right. If they’ve got 35 gigawatts now and there’s gonna be 2,400 available and they’ve got this massive team, they are poised to, to shoot to the moon. 

Allen Hall: Yeah. It’s 50 x, 100 x probably. That’s amazing. Well, congratulations to RES because smart moves. 

Joel Saxum: Yeah. I would say one, one thing to add is that as these assets, these, there’s been a lot of push right in the the renewables market to build, build, build, build, build.

And as these assets start to age, once you ran, run past the five year, 10 year FSA mark and warranty mark, that’s when the opportunity for RES becomes golden. ’cause once an asset gets outta that initial warranty period, and, and a lot of times you talk to asset owners, they’re not super happy with their FSA agreements.

That’s prime for RES to swoop in and start managing them.