The assets include 99MW hydropower project in Uttarakhand, and a 260MW/330MWp portfolio of solar projects in the state of Telangana
ReNew Power to acquire solar projects in Telangana. (Credit: Bishnu Sarangi/Pixabay.)
India-based ReNew Power has agreed to acquire two operating portfolios of renewable energy assets totalling 359MW for an enterprise value of INR28.5bn ($384m).
The assets include 99MW hydropower project in Uttarakhand, and a 260MW/330MWp portfolio of solar projects in the state of Telangana.
ReNew will acquire L&T Uttaranchal Hydropower, which owns the Singoli Bhatwari Hydroelectric Project (SBHEP), from L&T Power Development, a subsidiary of L&T.
With the transaction, project operations team at SBHEP will be added to ReNew’s team.
ReNew said that the acquisition marks its entry into the hydropower sector, which plays an important role in providing renewable energy solutions for its customers.
ReNew Power founder, chairman and CEO Sumant Sinha said: “We believe that the acquisition of these assets is expected to earn an attractive return within our targeted range and is proof that ReNew is uniquely positioned to be a big beneficiary of the consolidation of renewable energy assets in India.
“We are able to overlay our competitive advantages of scale, superior operations through vertical integration and utilisation of our industry-leading monitoring and analytics technology, financing innovation and access to low-cost capital to create significant value through acquisitions.
“Furthermore, the hydropower acquisition strengthens our ability to provide reliable and dispatchable power to the grid which complements our solar and wind assets.”
In a separate transaction, ReNew Power has also agreed to acquire 260MW/330 MW of solar projects in Telangana, which have been operating since around 4 years.
The projects are backed by a 25-year PPA with Northern Power Distribution Company of Telangana (NPDCTL) and Southern Power Distribution Company of Telangana (SPDCTL).
ReNew said that the acquired assets are located close to its existing solar projects in Telangana, facilitating enhanced productivity, reduced costs.
Sinha added: “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.”