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Thai renewables utility GPSC buys 41.6% stake in Avaada Energy in India
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State utility boosts its renewable capacity to 2,145 MW.
Thai electricity firm Global Renewable Synergy Company Plc (GPSC) saw its shares climb over 4% on Wednesday after it announced a purchase of 41.6% of India’s Avaada Energy for 14.8 billion baht ($453.29 million).
The renewable energy investment sent GPSC shares up 4.4% in morning trading against a 0.4% decline on the benchmark index, Reuters reported.
GPSC said the move increases its renewable energy capacity to 2,145 megawatts (MW) or 32% of the total capacity of 6,613 MW.
GPSC, a unit of state-owned energy giant PTT Plc, considers India as a focus country for renewable energy expansion.
“The investment in this platform aligns with the company’s growth strategy in the renewable energy business,” GPSC chief executive Worawat Pitayasiri said in a statement.
On its website, the Thai firm said: “The deal is in line with GPSC’s strategic plan to increase its renewable energy capacity both domestically and internationally and the group recognizes the investment potential of a partnership with Avaada, which aims to expand its renewable energy business to keep up with the growing demand for electricity in India, a country with a population of over 1.3 billion.
“In addition, the Indian government is actively promoting clean energy and is targeting 450 GW (gigawatt) of installed renewable energy capacity from the current capacity of 73 GW by 2030. Therefore, with its advanced technological research and development, India offers tremendous potential and an excellent opportunity for the group to expand its investment portfolio.”
Avaada has solar power capacity of 1,392 MW with another 2,352 MW under construction, which will begin commercial operations by 2022.
“This is a positive surprise,” said Finansia Syrus Securities analyst, Suwat Sinsadok, adding that the acquisition cost was reasonable.
The deal comes days after another PTT unit, PTT Global Chemical Plc, announced a $4.75 billion acquisition of German coating resins maker Allnex.
Reporting by Reuters
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