“Our estimate remains at 8.2 GWs of capacity operating by the end of FY22 and Adjusted EBITDA for FY22, excluding the impact of weather, will be approximately INR 60,750 million (or US$810 million using a foreign exchange rate of Indian rupees into U.S. dollars of INR 75.00 to US$1.00)," the company said in a statement on Thursday.
This assumes significance given that climate change has impacted India’s green economy with some wind power portfolios hit due to lower wind speeds. This decline during June-September was registered across the major wind bearing areas of the western region states of Gujarat, Maharashtra, Madhya Pradesh, Chattisgarh, and Goa; and the southern region states of Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Telangana.
“Adjusted EBITDA was not adjusted for the net negative impact of weather relative to normal of approximately INR 2,966 million (US $40 million) H1 FY22 and approximately INR 1,632 million (US$ 22 million) for Q2 FY22," the statement said.
Due to climate change, rainfall patterns and warming are changing, along with the changes in the wind regime, leading to variability in wind speeds.
“Total Income for the Q2 FY22 was INR 21,312 million (US$ 287 million), an increase of 44.3% over Q2 FY21," the statement said and added, “Adjusted EBITDA for Q2 FY22 was INR 18,184 million (US$ 245 million), an increase of 50.3% over Q2 FY21."
This comes in the backdrop of ReNew Power's merger with Nasdaq-listed special purpose acquisition company (SPAC) RMG Acquisition Corp. II (RMG II) at an enterprise value of around $8 billion. The new entity, ReNew Energy Global Plc, was listed on the Nasdaq under the ticker symbol ‘RNW’, at an equity value of $4.4 billion.
“Net loss for H1 FY22 was INR 9,849 million (US$ 133 million) compared to a net loss of INR 592 million in H1 FY21. The net loss for H1 FY22 included INR 16,407 million (US$ 221 million) of charges related to listing on Nasdaq Stock Market LLC, issuance of share warrants, listing related share-based payments and others," the statement said.
ReNew Power has a total portfolio of 10.217 GW of which 6.315 GW is operational. In 2018, ReNew Power had acquired 1.1GW of wind and solar power assets from Ostro Energy--one of the biggest acquisitions in the Indian renewable energy space.
There is a growing interest in Indian green energy space amid rising focus on environmental, social and governance (ESG) investing. At COP-26 summit in Glasgow, India announced its plans to increase non-fossil fuel power generation capacity to 500 GW by 2030. India is running what will become the world’s largest clean energy programme, with an aim of having 175 GW of clean energy capacity by 2022.
The $1.2 billion equity proceeds from the ReNew Power merger with RMG II includes a private investment in public equity (PIPE) deal of $855 million. The PIPE investors include BlackRock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management Ltd, TT Environmental Solutions Fund and Zimmer Partners.
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