What Reliance’s Decision to Acquire a Majority Stake in a Solar Software Company Means
Oil-telecom conglomerate Reliance Industries has signed definitive agreements to acquire a majority stake in California-based solar software startup SenseHawk Inc for a total deal value of $32 million. The move comes as the company focuses on the new energy sector where it plans to reach 100 GW of solar power by 2030.
Why the acquisition?
Founded in 2018, SenseHawk is a developer of software-based management tools for the solar power generation industry. It offers solutions from planning to production by helping companies streamline processes and use automation. SenseHawk also offers a digital platform for end-to-end solar asset lifecycle management.
The company has over 140 customers in 15 countries with assets totaling over 100 GW. Its revenue for fiscal year 2022 was $2,326,369, while it was $1,165,926 for fiscal year 2021 and for fiscal year 2020 it was $1,292,063. Reliance Industries Chairman Mukesh Ambani said the acquisition will help the conglomerate reduce costs, improve productivity and improve on-time performance to provide low levelized cost of electricity (LCoE) for solar projects. worldwide.
“We are on a mission to improve the solar energy ecosystem, capturing 50% of the market by 2025 and with RIL as our partner, we will accelerate our execution towards this goal,” said Rahul Sankhe, President and co-founder of SenseHawk.
How does Reliance position itself in the new energy sector?
Last year, Reliance announced an investment of Rs 75,000 crore to be deployed in its new energy business over the next three years.
Prior to SenseHawk, the conglomerate had made a number of acquisitions to boost its new energy game. In February this year, it completed a 40% acquisition of Sterling & Wilson Renewable Energy Ltd (SWREL) from the Shapoorji Pallonji Group. SWREL has the expertise in executing over 11 gigawatts of turnkey solar projects worldwide.
In December 2021, Reliance New Energy Solar Ltd, a wholly owned subsidiary of Reliance Industries, took over Faradion, a UK-based battery company, for $135 million.
In October 2021, it acquired the Norwegian company REC Solar for the manufacture of photovoltaic (PV) solar panels. Reliance’s photovoltaic cell manufacturing facility in Jamnagar, Gujarat will be based on REC’s technology. The facility will be operational from 2024.
Last month, at its 45th annual general meeting, Ambani said the conglomerate would begin battery pack production by 2023 and transition to a fully integrated 5 GWh annual cell-to-block manufacturing facility by 2024. .