Confirmed. Renew Power Sells Rooftop Portfolio To Fourth Partner For Rs 672 crores

Sumant Sinha: Seeking The Bigger Picture

ReNew Power, has confirmed the news of the selloff of its distributed rooftop portfolio. The news had been doing the rounds since last week, including on Saur energy. The firm today announced that it has sold 117 MW/138 MWp of its distributed rooftop solar portfolio to Fourth Partner Energy, one of India’s leading rooftop solar energy companies, for Rs 6.72 billion (~$89.9 million).

Hyderabad based Fourth Partner is an investee company of TPG and Norfund.

After accounting for an outstanding debt of Rs 1.37 billion (~$18.3 million), the cash proceeds from the sale are Rs 5.35 billion (~$71.6 million). ReNew expects to record a gain from the deal.

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ReNew states that the sale demonstrates its commitment to creating greater shareholder value through capital reallocation into higher-return opportunities and being more efficient by focusing more on large utility-scale projects. This allows the company to fully leverage its competitive advantages of scale, strong asset management, digital analytics, and financing innovation.

With the sale, the run-rate-adjusted EBITDA for ReNew’s total portfolio will be reduced by Rs 700 – 720 million (~$9.35 – 9.55 million).

Speaking about the sale, Sumant Sinha, Chairman and CEO, ReNew Power, said, “Strong capital discipline is a core value for ReNew. This sale illustrates the value that can be released through sale of assets and enhances our ability to capitalize on higher-return opportunities in the near term.” the firm has not confirmed if these solar assets are all onsite solar assets, located at it’s large solar projects.

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As we had highlighted in our own story last week, the sale also opens up another pathway for other large developers to follow, as quality renewable energy assets continue to have high demand among smaller firms looking to build a portfolio.

Renew has recently set up a JV with Fluence Energy for its storage ambitions, and has indicated a growing interest in the corporate PPA market, besides Green Hydrogen and Hybrid renewable projects going ahead.