ReNew Power has inked definitive agreements to acquire more than 500 MW of operating wind and solar assets. The acquisition would reportedly comprise operating wind and solar assets totaling 471.65 MW and 56.25 MW respectively, taking the total capacity to 527.9 MW. The acquired assets are located across eight states and are estimated to be worth approximately Rs 30 billion in total.
Moreover, the 527.9 MW solar and wind projects are expected to earn Rs 3.95-4.24 billion in full-year earnings before interest, taxes, depreciation, and amortisation (EBITDA). The deal is expected to be completed in the second quarter of 2023. ReNew, on the other hand, will receive all cash flows generated by the assets starting on the lock box date, which is April 1, 2022. ReNew Power also agreed to a 25-year power purchase agreement (PPA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for a 200 MW solar project. ReNew Power was awarded this capacity by MSEDCL at Rs 2.43 per unit as part of a competitive tender to procure 500 MW of solar power from interstate or intrastate grid-connected solar projects.
In May 2022, the Maharashtra energy department and ReNew Power signed an agreement of Rs 500 billion for renewable energy projects in the state over the next six to seven years in Davos. Maharashtra has raised the priority level for renewable energy projects to 80. Recently, IREDA announced that it had sanctioned Rs 144.4 million in loans and had already disbursed over Rs 100 billion in Maharashtra for renewable energy IREDA projects.