Torrent Power to acquire 50 MW solar plant from SkyPower Group

Torrent Power has inked a share purchase pact to acquire 100 per cent equity in a 50 MW solar plant of SkyPower Group at an enterprise value of Rs 417 crore.

Torrent Power Ltd has entered into a Share Purchase Agreement (SPA) with SkyPower Southeast Asia III Investments Limited and SkyPower Southeast Asia Holdings 2 Limited (the Sellers) for the acquisition of 100 per cent securities of Sunshakti Solar Power Projects Private Ltd (the SPV special purpose vehicle).

The SPV operates a 50 MW Solar Power Project in the state of Telangana.

Long-term Power Purchase Agreement (PPA) for the Project is with Northern Power Distribution Company of Telangana Limited (NPDCTL) for a period of 25 years at a fixed tariff of approx Rs 5.35 per kWh, with remaining useful life of about 20 years.

The enterprise value for this acquisition is around Rs 417 crore, subject to closing price adjustments, if any, the company said in a statement.

The acquisition is further subject to customary conditions for transaction closure.

Torrent Power, the integrated power utility of the diversified Torrent Group with group revenues of Rs 20,500 crore (approx. USD 2.7 billion) is one of the largest companies in the country's power sector with presence across the entire power value chain of generation, transmission and distribution.

Torrent Power currently has an aggregate installed generation capacity of 4.1 GW, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0 GW). It also has a capacity of 0.4 GW of renewable energy plants under development.

With the acquisition of 50 MW Solar Power Plant, Torrent Power's total generation capacity, including under development portfolio, will reach 4.6 GW with a renewable portfolio of more than 1.5 GW.