Oil and Natural Gas Corporation (ONGC), India's largest oil and gas explorer, through its wholly-owned subsidiary, ONGC Green Limited (OGL), has acquired clean energy firm PTC Energy for Rs 9.25 billion ($106.02 million) according to an exchange filling on Tuesday, March 4.

PTC Energy, now a wholly-owned subsidiary of OGL, brings to the table a robust operational wind power capacity of 288 megawatts. These projects are located across seven sites in three Indian states, providing a geographically diverse and stable source of renewable energy. The company's financial performance, with a revenue of Rs 3.22 billion in the fiscal year 2024, demonstrates its established market presence and operational efficiency.

This acquisition aligns perfectly with ONGC's overarching strategy to achieve a 10 gigawatt (GW) renewable energy portfolio by 2030. The company is also committed to achieving net-zero emissions (scope 1 and scope 2) by 2038, showcasing its dedication to environmental sustainability. The purchase of PTC Energy, executed at arm’s length and not falling under related party transactions, underscores ONGC’s commitment to transparent and strategic growth in the renewable energy sector.

India's ambitious renewable energy targets provide the backdrop for ONGC's aggressive expansion. The nation has pledged to establish 500 GW of non-fossil fuel electricity generation capacity by 2030. However, the country faces challenges in meeting its interim targets, having fallen short of the previously set goal of adding 175 GW by 2022. The acquisition of PTC Energy, therefore, contributes significantly to bridging this gap and accelerating India's transition to clean energy.

ONGC Green's recent activity highlights its dynamic approach to renewable energy development. In February, ONGC, in partnership with its joint venture NTPC Green Energy, acquired Ayana Renewable Power, which operates solar and wind plants valued at $2.3 billion. These acquisitions collectively demonstrate ONGC’s commitment to diversifying its energy portfolio and establishing itself as a major player in India’s renewable energy landscape.

The acquisition of PTC Energy not only expands ONGC's renewable energy capacity but also enhances its operational expertise in wind power generation. Integrating PTC Energy's existing infrastructure and expertise will enable ONGC Green to streamline its operations and accelerate the development of new renewable energy projects.

The financial markets have reacted positively to ONGC’s strategic moves. The company’s stock performance reflects growing investor confidence in its diversification efforts and its commitment to sustainable energy practices. As India progresses towards its ambitious renewable energy goals, ONGC's proactive investments in clean energy infrastructure are poised to play a pivotal role in shaping the nation's energy future. This strategic acquisition of PTC Energy is a testament to ONGC’s commitment to a greener, more sustainable energy landscape in India.