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ReNew announces its 5 GW partnership with Petronas
Gentari Renewables India Pte. Ltd will have a 50% equity stake in NASDAQ-listed ReNew’s utility scale 5 GW renewable energy portfolio comprising of solar, wind and energy storage projects. This comes in the backdrop of ReNew lining an ambitious Rs35,000 crore capital expenditure plan
New Delhi: ReNew Energy Global Plc and Gentari Sdn Bhd, a unit of Malaysia’s Petroliam Nasional Bhd (Petronas), on Wednesday announced an equal joint venture (JV) to develop solar, wind and energy storage projects in India totalling 5 gigawatts (GW).
Petronas set up Gentari in June 2022 to build a renewable energy capacity of 40GW, supply 1.2 million tonnes per annum (mtpa) of green hydrogen and set up electric vehicle (EV) charging points across the Asia-Pacific, with a focus on Malaysia and India. Mint was the first to report on the ReNew-Petronas partnership on 8 August 2022.
“ReNew Energy Global Plc, India’s leading decarbonization solutions company, through its subsidiary ReNew Power Pvt. Ltd (ReNew) and clean energy solutions provider Gentari, through its subsidiary Gentari Renewables India Pte. Ltd, have executed key terms to collaborate on a 50:50 joint venture in clean energy solutions. The term sheet was exchanged between Sushil Purohit, chief executive officer of Gentari, and Sumant Sinha, founder, chairman and CEO of ReNew,” ReNew said in a statement.
“As part of this proposed joint venture, Gentari and ReNew will collaborate to explore investments into the development of renewable assets, including solar, wind and energy storage, to achieve a target of 5GW in renewable energy capacity,” the statement added.
ReNew has lined up an ambitious Rs35,000 crore capital expenditure plan. In June, Gentari agreed to purchase a 49% stake in ReNew’s 403 megawatts (MW) peak power project.
Queries emailed to the spokespersons of ReNew Energy Global and Petronas about the deal value remained unanswered till press time.
Global oil companies such as energy giant Shell Plc, Total and Thailand’s PTT Group have already established a significant presence in India’s green energy sector as the conventional hydrocarbon space undergoes disruption. ReNew has a total portfolio of 13.7GW, of around 8GW is operational. Mint reported earlier that as part of its capital recycling strategy, ReNew has been exploring several opportunities. These include a potential sale of 1.1GW in clean power projects for approximately $450 million in equity value and plans to sell a 30% stake in its 2.3GW commercial and industrial project portfolio.
ReNew Power recorded a net profit of $1 million in the fourth quarter of FY23, against a net loss of $43 million a year earlier. The firm recorded a loss of $61 million in FY23 against a loss of $196 million in FY22.
ReNew had earlier announced a similar agreement with Mitsui and Co. Ltd, with the Japanese company picking up a 49% stake in ReNew’s 1.3GW round-the-clock project comprising three wind farms and one solar plus battery storage farm being built in Rajasthan, Karnataka and Maharashtra.
“As partners, Gentari and ReNew can accelerate their decarbonization objectives, enabling Gentari to make substantial progress in expanding its renewable energy portfolio and achieving its global ambition to build over 30GW in renewable energy capacity by 2030. For ReNew, this partnership ties in with its strategy of collaborating with long-term partners, accelerating renewable energy transition and meeting its net zero target by 2040,” the statement added.
As part of its growth strategy, ReNew has joined hands with AES and Siemens-backed Fluence to form an equal venture for the energy storage business in India. ReNew has also partnered with state-run Indian Oil Corp. Ltd and Larsen and Toubro Ltd to form a tripartite venture for the green hydrogen sector in India. It also plans to build a green hydrogen manufacturing facility in Egypt’s Suez Canal Economic Zone. ReNew has also announced its plans to invest Rs1 trillion in total in both Maharashtra and Karnataka in green energy projects.
“We are delighted to welcome Gentari as a strategic partner in our goal of accelerating the clean energy transition. This partnership will be crucial in developing innovative solutions which will contribute significantly to India’s 2030 goal of achieving 500GW of installed renewable energy capacity,” Sinha said in the statement.
Currently, India has an installed renewable energy capacity of 172GW, and another 128GW are either under implementation or have been bid out. Key issues in the renewable energy sector in India include the low availability of solar modules in the country and the high cost of setting up battery energy storage systems which is critical to maintaining grid stability.
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First Published:26 Jul 2023, 06:37 PM IST
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