India's ReNew bags roughly 2 GW of solar PPAs

Photovoltaic system Source: pixabay.com

Indian renewables company ReNew Energy Global plc (NASDAQ:RNW) said that it has signed power purchase agreements (PPAs) with utilities and corporate off-takers in India involving around 2 GW of solar energy.

ReNew signed four PPAs with Solar Energy Corporation of India (SECI), a government-owned entity, and one agreement with Punjab State Power Corporation Limited (PSPCL) to deliver roughly 1.5 GW of power from new utility-scale solar farms. These plants will be located in the western state of Rajasthan and operate under flat tariffs for 25 years, ReNew said.

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Two PPAs with SECI cover projects for 600 MW and 375 MW under the SECI Rajasthan IV scheme, with a tariff set at INR 2.18 (USD 0.028/EUR 0.027) per kWh. For the second pair of PPAs, involving 300 MW and 100 MW under the SECI IX scheme, ReNew will supply power for INR 2.37/kWh.

The company said it recently acquired a beneficial interest in the 300-MW SECI IX and the 375-MW SECI Rajasthan IV projects, subject to the terms of the respective PPAs.

Under the contract with PSPCL, ReNew will deliver a 100-MW project and supply power at INR 2.33/kWh.

The company expects all these projects to come online by the fourth calendar quarter of 2023.

As for corporate power procurement, ReNew secured long-term PPAs to offload electricity or renewable energy credits totalling around 491 MW, with tariffs ranging between INR 3.06 and INR 3.95 per kWh. Corporate buyers include India’s Grasim Industries Ltd (NSE:GRASIM), Netmagic, which is a subsidiary of Japan’s NTT Communications, and an unnamed "US-based global tech major".

The solar farms for the corporate customers will be located in India's states of Gujarat, Maharashtra, and Rajasthan.

These agreements helped ReNew boost its overall corporate portfolio to over 900 MW. Its total gross portfolio grew to some 12.1 GW from 10.2 GW since the beginning of the calendar year, ReNew highlighted.

(INR 1.0 = USD 0.131/EUR 0.124)