- ReNew signs binding agreements for the acquisition of two
operating portfolios
-
- 99MW hydropower project in Uttarakhand,
- 260MW/330MWp solar projects in the state of Telangana
- The combined enterprise value of the acquisitions is around INR
28.5 billion (US$ 384.0 million)
-
- Adds approximately INR 3.8 – 4.0 billion (US$ 50.7 – 53.4 million) of EBITDA on a full-year
basis
- ReNew announces its entry into hydropower, enabling it to
expand its offerings and provide value-added solutions to the
market
- The transaction is expected to earn an equity return within
ReNew's targeted range and is another step towards meeting its
growth targets
GURGAON, India, Aug. 11, 2021 /PRNewswire/ -- In line with its
strategy of organic and inorganic expansion, ReNew Power ("ReNew"
or "the Company"), India's leading
renewable energy company, today announced the acquisition of two
assets with a combined enterprise value of INR 28.5 billion
(US$384.0 million), which are
expected to generate INR 3.8 – 4.0 billion (US$ 50.7 – 53.4 million) of EBITDA annually.
ReNew 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.
ReNew has been a leader in providing firm renewable energy
solutions that address the intermittency of standard solar and wind
projects. ReNew won two such projects last year including a Peak
Power (PP) Project as well as a Round-The-Clock (RTC) Power Project
for which ReNew signed a Power Purchase Agreement (PPA) last
week. The addition of SBHEP, which has a significant pondage
capacity of 2 – 3 hours, adds 200 – 300 MWhr of low-cost hydro
storage to ReNew's portfolio. This further extends ReNew's
leadership in storage and reliable power solutions
SBHEP, situated on the Mandakini river in Rudraprayag district
of Uttarakhand, was operationalised in December 2020 and is expected to have a residual
life of nearly 35 years. This project is expected to have a net
billed generation of 360 million units annually, or around a 50%
PLF, and has a similar profitability profile as ReNew Energy's
current operating portfolio. As the project is commissioned after
8th March 2019, the power
generated from this project will facilitate recently notified Hydro
Purchase Obligations (HPO) compliance for the buyer.
In a separate transaction, ReNew Power 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 utilize
ReNew's proprietary monitoring and analytical technology to further
boost output.
Speaking about the acquisitions, Mr 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 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. 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."
About ReNew Power:
ReNew is India's leading
renewable energy Independent Power Producer (IPP) by capacity and
is the 10th largest global renewable IPP by operational
capacity. ReNew develops, builds, owns and operates utility-scale
wind energy projects, utility-scale solar energy projects,
utility-scale firm power projects, and distributed solar energy
projects. As of March 31, 2021, ReNew
Power had a total capacity of approximately 10 GW of wind and solar
energy projects across India,
including commissioned and committed projects from organic and
inorganic growth opportunities. ReNew's current group of
stockholders contains several marquee investors including Goldman
Sachs, CPP Investments, Abu Dhabi Investment Authority, GEF SACEF
and JERA.
As previously announced, ReNew Energy Global Plc. has entered
into a definitive agreement for a business combination with RMG
Acquisition Corporation II (NASDAQ: RMGB), a publicly traded
Special Purpose Acquisition Company (SPAC), that would result in
ReNew becoming a publicly listed company. Completion of the
proposed transaction is subject to customary closing conditions and
is expected to occur in the third quarter of the calendar year
2021. For more information, please visit: www.renewpower.in; Follow
ReNew Power on Twitter @ReNew_Power
No Offer or Solicitation
This press release is for informational purposes only and shall
neither constitute an offer to sell or the solicitation of an offer
to buy any securities, nor shall there be any sale of securities in
any jurisdiction in which the offer, solicitation, or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction.
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SOURCE ReNew Power Private Limited