Home / Companies / News /  ReNew Power adds over 700 MW of solar, wind assets to its portfolio

New Delhi: ReNew Power on Thursday said it has signed definitive agreements to acquire operating wind and solar assets of 527.9 MW. It has also signed a power purchasing agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for a 200 MW solar project.

The total enterprise value of these agreements is around 30 billion ($388 million) and is expected to generate full-year FY23 EBITDA of about 3.95-4.24 billion ($ 51-55 million).

“Both deals see the company’s gross total portfolio jump over 25% to 12.8 GW from 10.2 GW at the beginning of 2022," said a company statement.

The acquired 527.9 MW, comprising 471.65 MW of wind and 56.25 MW of solar assets,  is spread across eight Indian states. 

The transactions are expected to be closed in the second quarter of the ongoing financial year (FY23), but ReNew will receive cash flows generated from the assets from 1 April, 2022.

The agreements include power purchase pacts with state distribution companies in Gujarat, Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, Telangana, Kerala, and Tamil Nadu, 25 MW of PPAs with corporate customers.

For the PPA with MSEDCL, ReNew will supply electricity at 2.43/kWh for 25 years. The asset will be in Rajasthan and provide electricity to Maharashtra. The project is expected to be commissioned by Q4 FY24.

Sumant Sinha, chairman and CEO, ReNew, said: “The clean energy transition in India must happen at an increasingly rapid pace to meet and green the expanding energy requirements of the country, and to strengthen its longerterm energy security. Given the recent electricity shortages and blackouts, customers are even more keen to sign new power agreements to ensure future supply," he added.

ReNew is one of the largest renewable energy independent power producers (IPPs) in India and globally. ReNew develops, builds, owns, and operates utility-scale wind energy, solar energy, and hydro projects.

As of 31 May, ReNew had a gross total portfolio of 12.8 GW of renewable energy projects across India, including commissioned and committed projects, the company said.

ABOUT THE AUTHOR

Rituraj Baruah

Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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