ReNew’s 300MW project on sale
New Delhi: Nasdaq-listed ReNew will sell its 300 MW solar project in Rajasthan to India Grid Trust.
ReNew said in a statement that it has signed a share purchase agreement with India Grid Trust to sell ‘ReNew Solar Urja Private Ltd’, a 300 MW solar project in Rajasthan—for a total enterprise value of $199 million.
“The transaction is expected to close in accordance with PPA conditions. Approximately $8 million is expected to be additionally received as an earn-out on account of change-in-law proceeds, after the first payment is realized by RSUPL,” it said.
“The sale reaffirms strong investor interest in assets developed by ReNew and is aligned with the company’s strategy to enhance shareholder value through capital recycling and investment into higher-return opportunities.”
After the transfer of the outstanding debt to the buyer, the transaction will result in a cash inflow of approximately $82 million, including change-in-law proceeds for ReNew.
Kailash Vaswani, Group CFO of ReNew, said: “We are committed towards discipline in allocating capital as well as enhancing shareholder value through asset recycling. This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities. We continue to see interest in the private markets for high-quality stabilized assets.”
ReNew Solar Urja, located in Jaisalmer, Rajasthan, was commissioned in December 2021. The project has a 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of ₹2.71 per unit. The project has been operational and revenue generating for the past two years.
In 2022-23, the solar project delivered a net plant load factor (PLF) of 27.42%.
As of 30 September 2023, ReNew’s clean energy portfolio stood at of 13.8 GW on a gross basis as of September 30, 2023, is one of the largest globally.
In addition to being an independent power producer in India, we provide end-to-end solutions in a just and inclusive manner in the areas of clean energy, value-added energy offerings through digitalization, storage, and carbon markets that increasingly are integral to addressing climate change.
India Grid Trust is an Infrastructure Investment Trust (InvIT) in the power transmission sector.
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Published: 08 Jan 2024, 10:33 PM IST