Reliance New Energy Solar buys REC Solar for $771 million
11 October 2021
Reliance New Energy Solar Limited (RNESL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has acquired 100 per cent of REC Solar Holdings from China National Bluestar (Group) Co Ltd, for an enterprise value of $771 million.
REC Group is an international pioneering solar energy company, headquartered in Norway and with operational headquarters in Singapore and regional hubs in North America, Europe, Australia, and Asia-Pacific. REC, through its technological innovations, has developed superior, high efficiency and long-life solar cells and panels for clean and affordable solar power.
The company has three manufacturing facilities – two in Norway for making solar grade polysilicon and one in Singapore making PV cells and modules.
REC’s Alpha and Alpha Pure range of solar modules are recognized as among industry leaders in efficiency, reliability and long guaranteed life. The heterojunction (HJT) technology used by REC helps its modules surpass the performance of other commonly used technologies in the industry.
REC has over 600 utility and design patents, of which 446 are granted and balance are under evaluation. It always had strong focus on research and development and now, coupled with Reliance’s world-class innovation, scale, and operational excellence, will further accelerate path breaking technological developments and introduction of new products.
REC is a trusted brand globally known for pioneering innovations. REC was the first to introduce half cut Passivated Emitter and Rear Cell (PERC) technology, which is adopted by all major manufacturers today, while REC has moved on to its, next generation HJT technology. REC’s Norway operation is distinguished by its low carbon footprint in the manufacture of polysilicon.
REC has more than 1,300 employees globally, who will become part of the Reliance family after successful completion of the transaction.
Reliance said it would strongly 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.
“I am immensely pleased with our acquisition of REC because it will help Reliance tap the unlimited and year-long power of Soorya Dev, the Sun God, that India is fortunate to be blessed with. It is in line with our strategy of investing in new and advanced technologies and operating capabilities aimed at achieving Reliance’s goal of enabling 100 GW clean and green energy before the end of this decade. This will constitute the largest contribution by a single company to Prime Minister Narendra Modi’s target for India to produce 450 GW renewable energy by 2030. It will enable India to become a world leader in green energy transition to overcome the climate crisis, Mukesh Ambani, chairman of Reliance Industries Limited, said.
“Together with our other recent investments, Reliance is now ready to set up a global scale integrated Photovoltaic Giga factory and make India a manufacturing hub for lowest cost and highest efficiency solar panels... As I heartily welcome multinational employees of REC into the Reliance Family, I assure them that they will now become participants in one of the most exciting and ambitious missions to lead India and the world into a new era of green energy-led sustainable and inclusive development. With utmost commitment and determination, we shall together do our bit to CARE FOR MOTHER EARTH and to CARE FOR ALL THE PEOPLE ON THE PLANET, which is central to Reliance’s business philosophy,” he added.
In India, Reliance plans to use this industry leading technology in their fully integrated, metallic Silicon to PV Panel manufacturing giga factory at Dhirubhai Ambani Green Energy Giga Complex, Jamnagar, initially starting with 4 GW per annum capacity and eventually growing to 10 GW per annum. Reliance hopes to use REC’s technology for establishing state-of-the-art next-generation fully integrated PV manufacturing facility at Dhirubhai Ambani Green Energy Giga Complex and subsequently replicate such complexes around the world.
The acquisition of REC will help Reliance 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.