ReNew signs 200 MW solar PPA, acquires over 500 MW of renewable projects

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Nasdaq-listed ReNew Power has expanded its gross renewables project portfolio to 12.8 GW with a pair of new deals, following the addition of 2 GW of projects in April.

The company has signed agreements to acquire an operating wind and solar portfolio of 527.9 MW. It includes 471.65 MW of wind and 56.25 MW of solar. It has also signed a power purchase agreement (PPA) with Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) for a 200 MW solar project. Under the terms of the PPA, it will supply electricity at INR 2.43/kWh ($0.031/kWh) over a period of 25 years.

Together, the deals will push the company’s gross total portfolio up by 25%, from 10.2 GW at the start of the year to 12.8 GW. The 527.9 MW of operating wind and solar projects are spread across eight Indian states.

The company said the total enterprise value of the agreements is around INR 30 billion. It said it expects the deals to push earnings before interest, taxes, depreciation, and amortization to between INR 3.95 billion and INR 4.24 billion in the fiscal 2022-23 period.

The projects it acquired have PPAs with state distribution companies in Gujarat, Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, Telangana, Kerala, and Tamil Nadu. About 25 MW of the PPA deals are with corporate customers. The projects have average remaining lifetimes of 17 years.

Under the PPA with MSEDCL, the 200 MW solar asset will be located in Rajasthan and will be connected to the inter-state transmission system to provide electricity to Maharashtra. The project is set for commissioning by March 31, 2024.

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