Reliance New Energy Solar acquires REC Solar: 8 key things to know

Mukesh Ambani. (PC-MoneyControl)

Industrialist Mukesh Ambani-led Reliance New Energy Solar Ltd (RNESL), on October 10, acquired 100 percent shareholding of China National Bluestar (Group) Co Ltd's REC Solar Holdings AS (REC Group) for an enterprise value of $771 million. RNESL is a wholly-owned subsidiary of Reliance Industries Ltd (RIL).

With this acquisition, Reliance moved closer to achieve the goal of generating or enabling generation of 100GW of solar energy by 2030, which is in line with the country's goal to produce 450GW of renewable energy by the same year. This acquisition is also seen as partial fulfilment of RIL's new-energy vision to become a global-scale photovoltaic (PV) manufacturing player.

ALSO READ: Reliance New Energy Solar acquires REC Solar Holdings for $771 million

"Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has announced acquisition of 100 percent shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd., for an Enterprise Value of USD 771 million," Reliance New Energy Solar said in a BSE filing.

Here's key things to know:

1) Following the acquisition, Reliance will become an international player in providing high efficiency and long-life solar cells and panels for clean and affordable solar power.

2) RIL's RNESL will become the owner of REL's three manufacturing facilities – two in Norway for making solar grade polysilicon and one in Singapore making PV cells and modules.

3) As REC’s Alpha and Alpha Pure range of solar modules are recognised as among industry leaders in efficiency, reliability and long guaranteed life, the acquisition will help RIL to surpass the performance of other commonly used technologies in the industry.

4) The new move by Reliance will welcome REC's 1,300 employees globally.

5) Through this acquisition, Reliance will support REC’s planned expansions, including 2-3 GW Cells and Module capacity in Singapore, brand new 2 GW Cells and Module unit in France and another 1 GW Modules plant in the US.

6) The Indian conglomerate is planning to use the Norwegian firm's leading technology in their fully integrated, metallic Silicon to PV Panel manufacturing giga factory at Dhirubhai Ambani Green Energy
Giga Complex in Jamnagar.

7) Reliance will initially start with 4 GW per annum capacity and eventually growing to 10 GW per annum. Also, RIL's deep expertise of scale coupled with REC’s technology will facilitate the establishment of state-of-the-art next-generation fully integrated PV manufacturing facility at Dhirubhai Ambani Green Energy Giga Complex.

8) The new acquisition will also help with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including in the US, Europe, Australia and elsewhere in Asia.

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