ReNew Power inks 5 PPAs to supply around 1500 MW solar energy

ReNew Power on Thursday said it has signed five power purchase agreements (PPAs) for the supply of around 1,500 MW electricity generated from solar plants.

The company has signed PPAs with Solar Energy Corporation of India (SECI) and Punjab State Power Corporation Ltd (PSPCL), as well as multiple long-term purchase agreements with corporate buyers together totalling around 2 GW, a company statement said.

This has seen the company's gross total portfolio jumping to 12.1 GW from 10.2 GW at the beginning of this calendar year.

The new utility solar projects will be located in the western state of Rajasthan and have flat tariffs over 25 years.

Four solar PPAs have been signed with SECI and one with PSPCL. Two PPAs of 600 MW and 375 MW are under the SECI Rajasthan IV scheme, where ReNew will supply electricity at Rs 2.18/kWh.

The other two PPAs with SECI for 300 MW and 100 MW are under the SECI IX scheme and have a tariff of Rs 2.37/kWh.

The ReNew recently acquired a beneficial interest in the 300 MW (SECI IX) and 375 MW (SECI Rajasthan IV) projects, subject to the terms of the respective PPAs.

For the PSPCL PPA of 100 MW, ReNew will supply electricity at Rs 2.33/kWh. All the projects are expected to be commissioned by the fourth calendar quarter of 2023.

Corporate buyers have signed long-term agreements with ReNew for the purchase of clean energy or renewable energy credits for approximately 0.5 GW (491 MW), with energy tariffs ranging between Rs 3.06 to Rs 3.95/kWh.

The corporates include a large US-based global tech major, Grasim Industries, and Netmagic, a subsidiary of NTT Communications, Japan.

This takes ReNew's overall corporate portfolio to over 900 MW, making it one of the largest renewable energy solutions providers to corporates, it stated.

ReNew Chairman and CEO Sumant Sinha, said, "The addition of 1.9 GW comfortably above our threshold returns is a testament to ReNew's competitive advantages."

ReNew recently also announced an investment by Mitsui & Co. Ltd in its 1.3 GW round-the-clock renewable energy project, and a joint venture with Indian Oil Corporation and Larsen & Toubro for developing green hydrogen capacity in India.