ReNew Power acquires Ostro Energy for Rs 10K cr

Clean energy firm ReNew Power said today that it has acquired Ostro Energy, in a deal estimated to be Rs 10,200 crore, enhancing its portfolio to 5,600 MW.

This strategic investment helps the company consolidate its position further in the fast-growing, clean energy sector in India, ReNew Power said in a statement.

The company did not disclose the deal size.

A source said however that the ReNew Power has acquired Ostro Energy Pvt Ltd for around Rs 10,200 crore.

The statement said ReNew has green energy assets of more than 4500 MW, which include a commissioned capacity of approximately 2800 MW.

The Ostro Energy has a total capacity of more than 1100 MW, out of which nearly 850 MW is already commissioned. With the acquisition of these assets, ReNew Power's capacity will now exceed 5600 MW. Over 65 per cent of the combined portfolio capacity is already operational, it added.

It said that this is the largest acquisition for the company till date. The addition of the Ostro team and assets to the ReNew family will further strengthen the company's vision of contributing to the Government of India's 2022 goal of 175 GW of renewable energy.

The Ostro has built an impressive business with diversified geographical spread; good quality infrastructure; and stable long term PPAs (power purchase agreement).

The Ostro Energy's assets are spread across Andhra Pradesh, Karnataka, Telangana, Rajasthan, Madhya Pradesh and Gujarat. The Ostro portfolio is also diversified by off takers and also by OEMs, further complementing the ReNew Power portfolio.

Concurrent with this transaction, Canada Pension Plan Investment Board (CPPIB) is investing an additional USD 247 million to support ReNew Power's financing for this acquisition.

As a result, the CPPIB's combined investment in ReNew Power now stands at USD 391 million, following an earlier investment of USD 144 million in January 2018.