ReNew Power Announces Adding 700 MW; Portfolio Jumps to 12.8 GW

Renewably energy player ReNew Power has announced that it has signed definitive agreements to acquire an operating wind and solar portfolio of about 528 MW. The green power capacity comprises 471 MW of wind and 56 MW of solar assets.

ReNew Power has also signed a power purchase agreement (PPA) with Maharashtra’s MSEDCL for a 200-MW solar project. 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.

The acquired 528 MW of operating wind and solar projects are spread across eight Indian states. ReNew Power held that the total enterprise value of these agreements is around $388 million (Rs 3000 crores) and is expected to generate in the current financial year EBITDA of about $51-55 million. The transaction is expected to close in the second quarter of this financial year. The official statement from the ReNew Power mentions that the company will receive all cash flows generated from the assets from the lock box date, which is April 1, 2022.

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ReNew Power also informs that the agreements have PPAs with state distribution companies in Gujarat, Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, Telangana, Kerala, and Tamil Nadu, plus 25 MW of PPAs with corporate customers, and have an average remaining life of 17 years2.

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

Sumant Sinha, Chairman and CEO, ReNew Power, says, “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 longer-term energy security.”

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He further adds, “Given the recent electricity shortages and blackouts, customers are even more keen to sign new power agreements to ensure future supply. ReNew Power will be at the heart of this growth in clean energy that will support India’s crucial fight against climate change.”

In the recently concluded World Economic Forum Annual Meeting in Davos, RenNew Power revealed that it has signed an MoU with the Maharashtra government where it would be investing $6 billion to generate up to 12,000 MW of power.