Denker Wulf EEN Merger, Tata Power & ADB $4.25B for Renewables

This week on News Flash, Denker Wulf and Energie Engineering Nord
are merging, Tata Power partners with the Asian Development Bank
for $4.25 billion in clean energy projects, and TPG is considering
buying Siemens Gamesa India assets. Sign up now for Uptime Tech
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https://www.windaustralia.com Welcome to Uptime News Flash.
Industry news lightning fast. Your hosts, Alan Hall, Joel Saxum,
and Phil Totaro discuss the latest deals, mergers, and alliances
that will shape the future of wind power. News Flash is brought to
you by IntelStor. For market intelligence that generates revenue,
visit www.intelstor. com. Allen Hall: Well, Phil, Tata Power has
signed a 4. 25 billion memorandum of understanding with the Asian
Development Bank for clean energy projects. And the agreement was
signed during the ongoing COP 29 conference in Baku, Azerbaijan.
The key initiatives coming out Out of this include a 966 megawatt
solar wind hybrid project and a pump hydro storage project. Now the
partnership will support India's target of 500 gigawatt renewable
energy capacity by 2030. This is really important, Phil, because
Tata plays a significant role in that. A role in India's economy.
Philip Totaro: And not just in renewable energy project development
and asset ownership and operations. Obviously they've got
automotive, they've got steel making, they do any number of things.
They're a pretty diversified industrial company. And what actually
a lot of people may not know is Tata Power is actually one of the
top five asset owners and operators of renewable energy assets in
India already. So getting an additional, MOU signed for, for 4. 25
billion is, is not going to hurt. But keep in mind, they also have
broader ambitions outside of India. They, they signed an agreement
with a company in Bhutan recently to do a five gigawatt renewable
project there. They've had ambition in Sri Lanka and, other kind of
regional markets within the Asia Pacific region there that it gives
them, they've been kind of quietly going about, spreading their
influence. And I, again, I think this is a fantastic move for them
and, and to be able to get this Asian Development Bank agreement in
place, I think is, if they get 100 percent of that, that money that
they're, they're talking about in this MOU, that, that's really
gonna help push Tata Power forward. Allen Hall: Well, staying in
India, TPG is in advanced talks to acquire the Siemens Gamesa
Indian assets. And that deal could, well, it's valued at more than
300 million currently. Now, TPG has emerged as a front runner after
outbidding industry players and a number of private equity firms.
And Phil, this is a valuable asset. I know a number of companies in
India were really shooting for this Siemens Gamesa business. Thank
you very much. But TPG has really rocketed to the top. Philip
Totaro: Yeah, and it's, it's fascinating because I wouldn't
actually have expected private equity to win this one. Mainly
because the, what Siemens is, is really offering in terms of their
asset portfolio in, in India is their manufacturing facilities. Any
operations and maintenance agreements that they have and, and that
entire side of the business, I would have thought that, They would
have either split off that side of the business. Maybe the Chinese
were going to come in and take over the factory space. So this is,
this is kind of a fascinating thing. And I'm, I'm curious to
actually see what TPG's strategy is going to be. Cause you've
already got, obviously Suzlon in the market. You've got. Companies
like Envision Energy coming into India, you've got Inox Wind,
you've got Cenvion that still has their, their Indian operations
and, and has, ambitions of their own. They want 10 percent market
share in that market. So what What is TPG's strategy here for
continuing to develop this technology and, and more importantly, is
will this deal include a technology license agreement so they can
also manufacture the four or five megawatt plus platform in, in
India as well? Because right now the majority of the turbines at
Siemens Gamesa and the designs that they have and the tooling that
they have in the manufacturing facilities are four megawatt. for
the, the two and a half and three, up to, I think, 3. 4 megawatt,
132 platform. So, to the extent that TPG intends to continue the,
this growth path I would be very interested to see what the
ultimate scope of this agreement is is gonna be. Allen Hall: And up
in northern Europe, there's a lot of activity too, as German wind
developer Dunkelwolf will eventually acquire. Energy Engineering,
NORD the initial acquisition looks like to be about a 25 percent
stake and it's planned for early 2025, and the remaining 75 percent
will transfer to Dunker Wolf in 2026, and the company showed those
two fill earlier this year. It is really fascinating because you
have an engineering focus group along with a developer and we
usually, when you connect those two together, it's greater than
each individual company by themselves. So it's, there's a high
value to this outcome. Philip Totaro: Yeah. And it's very
interesting because Germany in particular is, is a market, Austria,
you could say the same way. They're, they're markets where they,
they have a lot of smaller assets and Dunkerbolth certainly isn't
one of the bigger, asset owners in Germany, although they do have,
I want to say it's like, between 25 and 30 wind farms again, each
of varying size, usually only a handful of turbines each. But, the,
the important thing is that for the companies that do own assets in
markets like Germany or Austria, if they're not a big player and
have like an internal, development and engineering capability they
don't have an internal asset management and maintenance and
operations capability, this is, how you. Kind of get there is by
joining together these different bits and pieces that are going to
help, a smaller player like Dunker Wolf actually grow into becoming
a more prominent, and frankly, more capable company.