ReNew Power increases RE portfolio by 700MW

This brings the company’s total portfolio to 12.8GW.

ReNew Power has closed deals that will increase its renewable energy portfolio by more than 700 megawatts (MW) to a total of 12.8 gigawatts (GW), up 25% from the beginning of the year. 

Of the 700MW, some 527.9MW were from the acquisition of an operating wind (471.65MW) and solar (56.25MW) portfolio. 

The remaining 200MW were from a power purchase agreement (PPA) for a solar project with the Maharashtra State Electricity Distribution Company Limited (MSEDCL). 

“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 longerterm energy security,” Sumant Sinha, Chairman and CEO, ReNew, said.

ReNew Power noted that agreements have a total enterprise value of US$388m. It is expected to generate US$51m-55m in earnings before interest, taxes, depreciation, and amortisation for the financial year of 2023.

The agreements have PPAs with state distribution companies in Gujarat, Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, Telangana, Kerala, and Tamil NaduZ. It also covers some 25MW of PPAs with corporate customers, and have an average remaining life of 17 years. 

For the MSEDCL PPA, ReNew will supply electricity at around US3.1 cents per kilowatt-hour for 25 years. The asset will be in Rajasthan state and provide electricity to Maharashtra. The project is expected to be commissioned by Q4 FY24.