ReNew Power to spend USD 384m on solar, hydro purchases in India
The Singoli-Bhatwari Hydro Electric Power Project. Source: L&T Construction.
August 11 (Renewables Now) - India’s ReNew Power Pvt Ltd today announced deals to acquire solar and hydropower assets at a combined enterprise value of about INR 28.5 billion (USD 384m/EUR 327m).
The independent power producer (IPP) is buying a portfolio of operating solar plants in the state of Telangana with a combined capacity of 260 MW/330 MWp. These solar parks have been operating for around four years now under a 25-year contract with Northern Power Distribution Company of Telangana Ltd (NPDCTL) and Southern Power Distribution Company of Telangana Ltd (SPDCTL). They are located close to ReNew's existing solar projects in the state.
Separately, ReNew Power has agreed to acquire L&T Uttaranchal Hydropower Ltd, owner of the Singoli Bhatwari Hydroelectric Project (SBHEP), from L&T Power Development Ltd, a wholly-owned unit of engineering and construction firm L&T. SBHEP is a 99-MW hydropower plant on the Mandakini river in Rudraprayag district of Uttarakhand that has been operating since December 2020.
This transaction marks ReNew Power’s entry into the hydropower sector. Sumant Sinha, founder, chairman and CEO of ReNew Power, said the following on that matter: "[...] the hydropower acquisition strengthens our ability to provide reliable and dispatchable power to the grid which complements our solar and wind assets.”
SBHEP has a significant pondage capacity of two to three hours and adds 200 MWh-300 MWh of low-cost hydro storage to ReNew's portfolio, the company noted.
Overall, the new purchases are estimated to add between INR 3.8 billion and INR 4 billion to the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) on a full-year basis.