Renew power, Renewable energy company

Gurugram, Aug 11 In line with its strategy of organic and inorganic expansion, renewable energy major ReNew Power will acquire two assets with a combined enterprise value of Rs 2,850 crore ($384 million), which are expected to generate Rs 380-400 crore ($50.7-53.4 million) of EBITDA annually.As part of the twin acquisition, 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.It will also acquire 260 MW/330 MWp of operating solar projects in Telangana, a definitive agreement has been signed.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 wants to provide 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 strength 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 per cent PLF, and has a similar profitability profile as ReNew Energy's current operating portfolio. As the project is commissioned after March 8, 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, 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."Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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ReNew Power, a leading name in the renewable energy sector, signed a Memorandum of Understanding (MoU) with the Karnataka government in the presence of Chief Minister Basavaraj Bommai at the World Economic Forum meet, held at Davos to invest Rs 50,00 ...

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Gurugram, Aug 11 In line with its strategy of organic and inorganic expansion, renewable energy major ReNew Power ... ...