Torrent Power Mulls Over Buying 1.1 GW Clean Energy from ReNew Energy Global

ReNew Power to set up new manufacturing facilities in Gujarat & Rajasthan

Ahmedabad-based Torrent Power, that looks into the generation, transmission and distribution of power, is in the midst of discussions with ReNew Energy Global Plc for the purchase of clean power projects, the capacity of which will stand at 1.1 GW. Sources have revealed that the deal is valued at $1.2 billion.

ReNew Energy Global Plc is among the largest renewable energy independent power producers (IPPs) in India. Currently, its portfolio entails 120 operational utility-scale wind, solar and hydro energy projects spread across 9 Indian states. The firm also caters to commercial and industrial customers across the country. The firm boasts of 7.7 GW of operational capacity with an aggregate capacity of 13.4 GW, inclusive of capacity already won in competitive bids. As for Torrent Power, it has an aggregate generating capacity of 4110 MW. Of this, renewables stand at 1.068 GW capacity.

ReNew’s solar and wind capacities worth 350 MW and 450 MW are up for $450 million by Torrent Power in a non-binding offer.

Renew Energy Global has set sights on selling off its operational clean energy capacity to finance its recycle strategy. The revenue from these sales will be used to make investments into new energy assets.

In July 2022, Saur Energy had reported that Torrent is on a renewable energy expansion spree through new acquisitions and bids. The firm is keen to enter the sectors of transmission and distribution through privatization and franchising. In April, Torrent had declared the acquisition of a 50 MW solar power plant in Telangana from SkyPower Group against a consideration of Rs 417 crore through a share purchase agreement. In the same month, Torrent Power led the privatisation of electricity distribution network operations in Dadra & Nagar Haveli and Daman and Diu through 51% stake in Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited (DNHDD Power Distribution Company).

In a recent development, ReNew Power joined hands with Norfund, which is Norway’s state-owned investment fund, and the largest pension company in Norway, KLP. This will pave the way for the firm co-invest in projects involving transmission.

ReNew Energy Global Plc is a fresh entity that came into being after ReNew Power fused with RMG Acquisition Corp, listed on NASDAQ. At present, ReNew is looking to establish a joint venture with Fluence, known for spearheading projects in energy storage products and services, and cloud-based software for renewables and storage assets. That apart, the firm also has also forged a partnership with L&T to develop, own, execute and operate green hydrogen projects in India.