Reliance Industries Limited (RIL) on Sunday announced the acquisition of REC Solar Holdings for $ 771 million from China National Bluestar (Group) Company Limited.
The acquisition of the Norwegian solar panel maker by its subsidiary Reliance New Energy Solar Limited (RNESL) will see RIL, the operator of the world’s largest refinery, invest $ 10.1 billion in clean energy over three years following its June announcement.
Reliance, owned by Asia’s richest man Mukesh Ambani, plans to generate at least 100 gigawatts (GW) of solar power by 2030, accounting for one-fifth of India’s target of 450 GW by the end of this decade.
The group aims to build four “Ziga factories” to build solar cells and modules, energy-saving batteries, fuel cells and green hydrogen.
“Along with our other recent investments, Reliance is now ready to set up a global integrated photovoltaic Giga plant to transform India into a manufacturing hub for low cost and high efficiency solar panels,” Mr Ambani said in a statement.
RNESL has announced that Reliance Industries will invest $ 50 million in US energy storage company Umbri Inc. as part of its $ 144 million investment.
Globally, oil companies such as Royal Dutch Shell PLC and PP PLC have set goals to become net zero carbon companies by 2050 amid pressure from investors and climate activists.
According to data research firm IHS Market, solar installations around the world are set for the fastest growth in five years this year.
Mr Ambani said his company will continue to invest and collaborate with global players to provide customers with reliable and affordable prices in India and overseas markets.
Reliance said it would use REC’s technology in its PV panel manufacturing plant Giga, with an initial annual capacity of 4 GW, eventually rising to 10 GW.
It said the acquisition would help Reliance grow in key global green energy markets globally, including the US, Europe, Australia and other parts of Asia, which would support REC’s planned expansions in Singapore, France and the United States.
Reliance is getting the green light as India is currently raising its renewable energy capacity to about 100 GW to meet two-fifths of its electricity needs by 2030 under the Paris Climate Agreement.