ReNew Power acquires 359 MW of renewable energy assets

ReNew Power has announced the acquisition of two assets with a combined enterprise value of INR28.5 billion (US$384.0 million), which are expected to generate INR3.8 – 4.0 billion (US$ 50.7 – 53.4 million) of EBITDA annually.

ReNew 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.

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.