ReNew may sell up to 30% in C&I projects
2 min read 20 Feb 2023, 11:43 PM ISTReNew Energy, one of India’s largest clean energy developers, plans to hire investment bank Moelis & Co. to sell up to 30% equity stake in its 2.3 gigawatt C&I project portfolio, two people aware of the development said
PremiumReNew Energy Global Plc. is planning to sell a minority stake in its commercial and industrial (C&I) projects for around $300 million as part of its capital recycling strategy, two people aware of the development said.
The company, one of India’s largest clean energy developers, plans to hire investment bank Moelis & Co. to sell up to 30% equity stake in its 2.3 gigawatt C&I project portfolio, the people cited above said on the condition of anonymity, adding the plan is still in early stages.
There is growing investor interest in the mature C&I segment, which does not involve risks such as electricity distribution companies curtailing power procurement. Recently, Aditya Birla Group hired Standard Chartered to sell up to 49% stake in the group’s renewable energy business to raise around $400 million.
This also comes against the backdrop of ReNew planning ₹35,000 crore capital expenditure over the next 18 months. Founded in 2011, ReNew is among the pioneers in India’s green economy and has a 13.4 gigawatts (GW) portfolio with a commissioned capacity of 7.7GW. In August 2021, ReNew Power merged with Nasdaq-listed special purpose acquisition company RMG Acquisition Corp. II (RMG II) to form ReNew Energy Global Plc, a new entity; wherein it raised $800 million as part of the listing.
A ReNew spokesperson, in an emailed response, said, “We don’t comment on market speculation." A Moelis & Co. spokesperson in an emailed response said, “Moelis is unable to comment here."
ReNew has been looking at a number of opportunities as part of its capital recycling strategy, as reported by Mint earlier. Malaysia’s Petroliam Nasional Bhd, or Petronas, is in talks with ReNew to jointly set up green energy projects in India, wherein Petronas may buy around 49% stake at the project level. Mint also reported about Ahmedabad-based Torrent Power Ltd in talks to buy clean power projects totalling 1.1 GW from ReNew Energy Global Plc at an enterprise value of around $1.2 billion, wherein Torrent Power has submitted a non-binding offer for ReNew’s solar and wind power assets of 350 megawatts (MW) and 750MW, respectively, at an equity value of around $450 million.
“As part of its capital recycling strategy, ReNew is looking at a number of options," said one of the two people cited above requesting anonymity.
Global investors have been attracted by India’s clean energy trajectory with the interplay of green hydrogen and battery storage.
Earlier, Japan’s Mitsui & Co. Ltd. acquired a 49% stake in ReNew’s round-the-clock 1.3GW renewable energy project and 100MWh battery storage farm.
ReNew has tied up several partnerships as part of its growth strategy. This includes a partnership with Norway’s state-owned investment fund Norfund, and KLP, Norway’s largest pension company, to co-invest in transmission projects. ReNew Energy Global Plc’s subsidiary ReNew Power Private Ltd has also partnered with Elsewedy Electric SAE to set up a green hydrogen plant in the Suez Canal Economic Zone at an investment of $8 billion.
It has also joined hands with AES, and Siemens-backed Fluence to form an equal joint venture for energy storage business in India. In addition, ReNew has also partnered with state-run Indian Oil Corp. Ltd and Larsen & Toubro to form a tripartite venture for the green hydrogen sector in India.
