ReNew Power announces acquisitions of 359 MWs of renewable energy assets.

The two acquisition includes the 99MW hydropower project in Uttarakhand and 260MW/330MWp solar projects in the state of Telangana.

ReNew Power recently announced the acquisition of two assets with a combined enterprise value of ₹28.5 billion which are expected to generate ₹3.8 – 4.0 billion of EBITDA annually. 

The company announced that it will acquire L&T Uttaranchal Hydropower Ltd., which owns the Singoli Bhatwari Hydroelectric Project (SBHEP), from L&T Power Development Ltd., a wholly-owned subsidiary of the engineering and construction firm L&T.  As a part of the transaction, Renew will add the project operations team of SBHEP to its team. This acquisition marks Renew’s entry into the hydropower sector which is expected to play an important role in providing innovative renewable energy solutions for ReNew’s customers. 

The addition of SBHEP with the pondage capacity of 2-3 hours, adds 200-300 MWhr of low-cost hydro storage to ReNew’s portfolio.

In a separate transaction, Renew also announced the signing of a definitive agreement to acquire 260 MW/330 MWp of operating solar projects in Telangana. The projects have a 25-year PPA with Northern Power Distribution Company of Telangana Ltd. (NPDCTL) and Southern Power Distribution Company of Telangana Ltd. (SPDCTL) and have been operating for around 4 years. 

The acquired assets are located close to Renew’s existing solar projects in Telangana which should offer opportunities to enhance productivity, reduce operations and maintenance costs, and utilise ReNew’s proprietary monitoring and analytical technology to further boost output. 

Speaking about the acquisitions, Sumant Sinha, Founder, Chairman and CEO of ReNew Power, 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 industryleading 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. 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.”