ReNew Power Adds over 700 MW Solar and Wind Projects; Assets Portfolio Reaches ~12.8 GW Mark

Adding another feather in its cap, Sumant Sinha-led ReNew Power has signed definitive agreements to acquire an operating wind and solar assets portfolio of 527.9 MW, comprising 471.65 MW capacity of wind assets and 56.25 MW capacity of solar assets.
 
In addition, the Nasdaq-listed company has also signed a power purchase agreement (PPA) with state-owned Maharashtra State Electricity Distribution Company Limited (MSEDCL) for a 200-MW solar project.
 
Commenting on the recent sharp rise in the company’s portfolio, Sumant Sinha, Chairman and CEO of ReNew Power, said, “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.”
 
Post the two deals, the Gurugram-headquartered company’s aggregate asset portfolio rose more than 25 per cent to 12.8 GW from 10.2 GW at the beginning of 2022, the company said in a statement.
 
Moreover, the company’s newly acquired 527.9 MW capacity of operating wind and solar projects spread across eight Indian states.

Also, the total enterprise value of these agreements is around USD 388 million and is expected to generate full-year FY23 EBITDA of about USD 51-55 million.

However, the overall transaction is expected to be closed in Q2 FY23, but the company will receive all cash flows generated from the assets from the lock box date, i.e., April 1, 2022.
 
Besides, these agreements also have PPAs signed with state distribution companies (Discoms) in Gujarat, Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, Telangana, Kerala, and Tamil Nadu, along with 25 MW capacity of PPAs signed with corporate customers, and have an average remaining life of 17 years.
 
For the MSEDCL PPA, India’s leading renewable energy IPP will supply electricity at ₹2.43/kWh (~US 3.1 ¢/kWh) for 25 years. However, the project, which is expected to be commissioned by Q4 FY24, will be in the state of Rajasthan and will provide electricity to Maharashtra.
 
“Given the recent electricity shortages and blackouts, customers are even more keen to sign new power agreements to ensure future supply. ReNew will be at the heart of this growth in clean energy that will support India’s crucial fight against climate change,” Sumant added.