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Statkraft Plans to Sell $2 Billion Renewable Energy Assets in India

Norwegian renewable energy company Statkraft has decided to exit the Indian market by selling its solar and hydro power assets, estimated to be worth $2 billion. The company has engaged EY (Ernst & Young) to oversee the sale process, which is expected to begin in the coming weeks and attract interest from global renewable energy firms and investors.

Renewable Portfolio and Market Presence

Statkraft, Europe’s largest renewable energy producer, operates 1 GW of solar and hydro projects in India. Its assets are spread across Tamil Nadu, Rajasthan, Himachal Pradesh, and Uttarakhand. The company, which has been present in the country for nearly two decades, also holds a power trading license.

As part of its global strategy, Statkraft is planning to focus on key regions, including Norway, Europe, and South America, where it aims to scale operations and enhance competitiveness.

Previous Investment Attempts

In an effort to expand its footprint in India, Statkraft had previously sought to acquire Continuum Wind Energy and Sprng Energy in 2021 and 2022. However, it was unsuccessful, losing out to Shell in the bid for Sprng Energy, while the Continuum deal did not materialize due to ownership changes. In March 2023, the company became the first foreign player to acquire power assets in India through insolvency and bankruptcy proceedings, securing Lanco Mandakini Hydro Power.

Regulatory and Leadership Changes

Statkraft has faced regulatory challenges in India, including its legal battle in April 2023 against the state-imposed water cess on hydro projects in Himachal Pradesh. The case was taken to the High Court, which granted a stay on the tax.

The company has also seen leadership changes, with India country head Rahul Varshney resigning in April 2024. Following his departure, Tigima Iyer Utne was appointed from Statkraft’s global headquarters to oversee Indian operations.

Strategic Shift Towards Other Markets

Statkraft’s global CEO, Birgitte Ringstad Vartdal, previously stated that the company aims to prioritize investments in Europe and South America, where it sees strong growth potential in the renewable energy sector. With this planned exit from India, Statkraft is set to restructure its global investments and focus on expanding in select international markets.