India's Reliance swoops on solar capacity as part of net zero goal (updated)

Sterling and Wilson Renewable Energy

10/10/2021 10:01

* Buys REC Solar from China National Bluestar
    * Buys up to 40% stake in India's Sterling and Wilson Solar

 (Adds details on Reliance's Sterling and Wilson purchase,
context)
    By Nidhi Verma
    NEW DELHI, Oct 10 (Reuters) - Indian conglomerate Reliance
Industries Ltd  RELI.NS  on Sunday announced two deals to buy
solar capacity, as the owner of the world's biggest refining
complex seeks to become net carbon zero by 2035 and make India a
hub for low-cost solar manufacture.
    Through its unit Reliance New Energy Solar Ltd (RNESL),
Reliance is buying Norwegian-headquartered solar panel maker REC
Solar Holdings for $771 million from China National Bluestar
(Group) Co Ltd and an up to 40% stake in India's Sterling and
Wilson Solar  STEN.NS .
    Reliance in June said it would invest $10.1 billion in clean
energy over three years https://www.reuters.com/business/energy/reliance-invest-101-bln-new-energy-business-over-3-years-2021-06-24.
    Owned by Asia's richest man, Mukesh Ambani, the company
plans to build solar capacity of at least 100 gigawatts (GW) by
2030, accounting for over a fifth of India's target of
installing 450 GW by the end of this decade. 
    India relies on coal for more than 70% of its generation and
only 4% is produced through solar power.
    Ambani said in a statement on Sunday, Reliance was ready to
set up "a global scale integrated photovoltaic giga factory"
with initial annual capacity of 4 GW, eventually rising to 10
GW. 
    He said buying REC Solar would help Reliance to expand in
Australia, Europe, the United States and also elsewhere in Asia
and that it was seeking to make India a hub for the manufacture
of the lowest cost, highest efficiency solar panels.
    All fossil fuel companies are under pressure from investors
and campaigners to reduce emissions to limit global warming and
oil majors including Royal Dutch Shell Plc  RDSa.L  and BP Plc
 BP.L  have set goals to become net zero-carbon firms by 2050.
    The statements on Sunday said RNESL's 40% stake in Sterling
and Wilson Solar Ltd  STEN.NS  will be made through investment,
secondary purchase and an open offer. Reliance did not disclose
the full value of that deal but has agreed to acquire new share
and promoter's stake in Sterling and Wilson at 375 rupees each.
    In August, RNSEL said it would invest $50 million in U.S.
energy storage https://www.reuters.com/business/energy/reliance-joins-bill-gates-others-invest-144-mln-us-energy-storage-co-2021-08-10
 company Ambri Inc.

 (Additional reporting by Sethuraman N.R, by William Mallard;
editing by Jan Harvey and Barbara Lewis)
 ((nidhi.verma@thomsonreuters.com; +91 11 49548031; Reuters
Messaging: nidhi.verma.thomsonreuters.com@reuters.net))