By Shilpy Sinha
Copyright indiatimes
Mumbai: Investor interest in renewable energy is surging with distressed assets selling for more than twice their reserve prices boosting lender recoveries.Regen Powertech, a wind energy firm, was recently auctioned for ₹240 crore, which was nearly double its ₹125 crore opening bid, despite no anchor bidder. Wind World (India) shows a similar trend. NARCL acquired its debt for ₹670 crore 18 months ago, but bids have now crossed ₹1,250 crore. Earlier this month, Edelweiss sold 10% of Wind World’s debt for ₹143 crore, far above the ₹35 crore reserve price.SBI had sold its loan exposure to Regen Power through the Swiss auction route recently, recovering close to 40% on the outstanding. Similarly, earlier this month Edelweiss sold 10% of the Wind World debt making 4x return on the reserve price which was at ₹35 crore, finally sold for ₹143 crore.Now, NARCL had invited expressions of interest to sell ₹3,763 crore debt under the Swiss Challenge method, with Omkara ARC emerging as the anchor bidder at around ₹1,250 crore. The bad bank had bought the distressed wind energy firm’s loans for about ₹670 crore from a consortium of lenders 18 months ago and could make up to 2x return on its investment.Investor interest is coming back as India is moving towards a renewable energy target and has committed to achieving net zero by 2070 and reaching 500 GW of non-fossil fuel-based capacity by 2030. Renewable energy sector had seen a capacity addition of 28.7 GW in FY2025, which was higher by 55% than the 18.5-GW added in FY2024.Live Events”The capacity addition momentum continues in the current fiscal with 6.5 GW added in 2M FY2026. This was supported by favourable solar photovoltaic (PV) cell and module prices and the impending expiry of waiver on inter-state transmission charges with effect from June 30, 2025,” Icra said in a recent report.The power sector had struggled until 2022-23 with project delays, land and fuel issues, PPAs, and cost overruns, leading to massive NPAs, especially in thermal power. In 2018, 34 stressed coal-based plants with 40.1 GW capacity carried ₹1.7 lakh crore in debt. Today, after heavy provisioning and fewer new NPAs have cut banks’ net NPAs down to 1.3% in 2022, and the power sector has largely turned around.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onedelweissregen powertechEdelweissWind World (India)sbirenewable energythermal powerswiss challenge methodNARCL(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
