Reliance New Energy Solar Ltd. (RNESL) was incorporated on 7th June 2021 as a wholly-owned subsidiary of Reliance Industries Limited (RIL). It made a bold move into the solar industry by purchasing Norway-based Renewable Energy Corporation (REC) Solar from China National Bluestar for $771 mn (about Rs. 5,800 cr).
REC is a leading international solar energy corporation and is well-known for its high-efficiency solar cells and panels. RIL intends to enter the solar power generation and manufacturing, hydrogen production, e-fuels, and energy storage industries. It is also willing to provide a platform for renewable energy project financing in order to attract long-term global investments. With this acquisition, RIL announces its debut into green energy.
At the projected Gigafactory in Jamnagar, Gujarat, Reliance Industries stated it will employ REC’s technology to create metallic silicon and solar panels. An initial yearly capacity of 4 GW, with the potential increasing to 10 GW.
RNESL has also finalised an agreement to buy a 40% stake in Sterling and Wilson Solar (SWSL) from Shapoorji Pallonji and Company (SPCPL), Khurshed Daruvala, and SWSL. For a total of Rs. 2,850 cr, this is a mix of primary investment, secondary purchase, and an open offer. This news comes just hours after the company announced the $771 mn acquisition of REC Solar Holdings.
SWSL is a global engineering, procurement, and construction (EPC) and Operations and Maintenance (O&M) service provider in the renewable energy industry. The company employs 3,000 people and has a presence in 24 countries. It has completed over 11 GW of solar turnkey projects worldwide and has over 50 yrs of engineering experience.
By the end of the decade, Reliance plans to create 100 GW of renewable energy. This $2 bn deal is part of Ambani’s $10 bn renewables plan for acquisitions to generate clean energy.