Sumant Sinha-led ReNew Power is making a Rs 1,000-crore acquisition of wind power assets of the KC Thapar Group, helping India’s biggest renewable energy player strengthen its position in the rapidly consolidating sector.

ReNew Power will acquire three fully operational plants with a total capacity of 103 megawatts in Andhra Pradesh in one of the biggest deals in renewable energy sector this year, as the market leader shifts its strategy from primarily organic growth to big acquisitions. Re-New Power competed with a dozen Indian and foreign bidders for the assets.

“The acquisition of the KCT Group’s wind assets consolidates our leadership position in India’s rapidly evolving renewable energy space,” Kailash Vaswani, deputy chief financial officer at ReNew Power, told ET.

He did not give financial details of the transaction, but sources said the assets are valued at about Rs 1,000 crore and had 25-year contracts to sell power to distribution companies at Rs 4.80 per unit in agreements signed before tariffs plunged to Rs 3.46 per unit in auctions.

The steep fall in tariffs has sharply reduced margins in solar and wind power business, and helped trigger M&A deals in the sector, particularly after the government started auctioning projects. Several foreign companies have participated in auctions to enter the Indian market, and have made bids for projects on offer.

Kotak Investment Banking, which advised the KCT Group, said there were a dozen strategic and financial investors that were interested in the assets after the sale process began four months ago. “Superior asset quality with turbines from leading global suppliers and favorable location swung the deal.

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