ReNew Power has announced the signing of agreements to acquire two operating assets with a combined enterprise value of INR 28.5 billion (US$ 384 million). The addition includes 260 MW of solar assets in Telangana and a 99 MW hydro project in Uttarakhand.
The 260 MW operating solar projects in Telangana benefit from 25-year power purchase agreements with Northern Power Distribution Company of Telangana Ltd and Southern Power Distribution Company of Telangana Ltd.
The solar assets have been operating for around four years. These are located close to ReNew’s existing solar projects in Telangana, which would help the developer to lower operations and maintenance costs.
In the second transaction, ReNew Power has agreed to acquire L&T Uttaranchal Hydropower Ltd from L&T Power Development Ltd., a wholly-owned subsidiary of the engineering and construction firm L&T. L&T Uttaranchal Hydropower owns the Singoli Bhatwari Hydroelectric Project (SBHEP).
“The addition of SBHEP, which has a significant pondage capacity of 2 – 3 hours, adds 200–300 MWh of low-cost hydro storage to ReNew’s portfolio. This further extends ReNew’s leadership in storage and reliable power solutions,” read ReNew Power statement.
The hydropower acquisition strengthens ReNew Power’s ability to provide reliable and dispatchable power to the grid, complementing its solar and wind assets. Recently, the developer had signed a power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) for a round-the-clock (RTC) 400 MW electricity supply.
Speaking about the acquisitions, Sumant Sinha, Founder, Chairman and CEO of ReNew Power, said, “The acquisition of solar assets in Telangana and the hydropower project in Uttarakhand as well as the recent 200 MW MSEDCL auction win takes our commissioned and contracted capacity to well over 10 GW and sets us on the path to attain 18 GWs of capacity by 2025.”
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