ReNew Power Targets 18GW Capacity by 2024-25, from 6.4GW at Present

By Soumya Duggal/ Updated On Wed, Oct 13th, 2021

Highlights :

ReNew reaffirms FY’22 weather adjusted EBITDA guidance of US$ 810 mn and operating capacity of 8.2 GW
The firm expects to commission its total capacity of 10.2 GW by the end of FY’23 which will lead to an annual EBITDA between US$ 1.1 – 1.2 bn, or about double FY’21 EBITDA
Cash Flow to Equity (CFe) for the 10.2 GW is expected to be between US$ 380 – 410 mn
“ReNew will not need new equity to fund its aspirational target of 18 GW by FY’25. This target is
about 3x higher than the 6.4 GW operating currently,” said the firm.

To lead India’s energy transition and global green energy transformation, ReNew aspires to have 18 GW of operational capacity by FY’25, said Gurugram-based ReNew Power in a statement released yesterday. The company’s current operating capacity stands at 6.4 GW.

ReNew expects to have its 10.2 GW portfolio operational by the end of FY’23 which also includes 3.8 GW of committed capacity i.e. which has a PPA/LOA or for which the company has a binding acquisition agreement. The company expects this capacity to generate an annual EBITDA of US$ 1.1 – 1.2 bn and CFe of US$ 380 – 410 mn.

Net debt for 6.4 GW of operating capacity is approximately US$ 3.5 bn and 10.2 GW is expected to be US$ 5.7 bn which equates to a net debt to run rate EBITDA for 6.4 GW of 4.5x and 4.9x for 10.2 GW, according to the firm.

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ReNew Power is a renewable energy IPP (Independent Power Producer) with a capacity 9.86 GW of wind & solar power assets in India.

“Going forward, ReNew expects to have significant opportunities for value accretive growth in the Indian renewable energy market with the bid market representing about 300 GW, corporate PPAs representing 25 GW, and acquisition opportunities representing around 30-50 GW. ReNew’s current operational capacity stands at 6.4 GW following the commissioning of SECI-4 solar project in Jaisalmer, Rajasthan,” said the statement.

ReNew added that it will not require any new external equity for the aspirational target of 18 GW which is about 8 GW more than the company’s current total portfolio of 10.2 GW. An operating portfolio of 18 GW is expected to equity fund 3.5 – 4 GW, or ~20%, of annual capacity additions through CFe without the need for new external equity.