ReNew inks pact to sell 300 MW solar project to IndiGrid for $199 mn

Decarbonisation solutions firm ReNew on Monday said it has inked an agreement to sell a 300 MW solar project to India Grid Trust for USD 199 million.

The transaction is likely to close in accordance with PPA (power purchase agreement) conditions, a company statement said.

Approximately USD 8 million is expected to be additionally received as an earn-out on account of change-in-law proceeds after the first payment is realised by RSUPL (ReNew Solar Urja Private Limited).

According to the statement, ReNew has signed a share purchase agreement with India Grid Trust to sell a 300 MW solar project in Rajasthan ReNew Solar Urja Private Limited - for a total enterprise value of USD 199 million.

The sale reaffirms strong investor interest in assets developed by ReNew and is aligned with the company's strategy to enhance shareholder value through capital recycling and investment into higher-return opportunities, it added.

After the transfer of the outstanding debt to the buyer, the transaction will result in a cash inflow of approximately USD 82 million, including change-in-law proceeds for ReNew, it informed.

Kailash Vaswani, Group CFO of ReNew, said, "We are committed towards discipline in allocating capital as well as enhancing shareholder value through asset recycling. This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities. We continue to see interest in the private markets for high-quality stabilised assets".

ReNew Solar Urja, located in Jaisalmer, Rajasthan, was commissioned in December 2021.

The project has a 25-year power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of Rs 2.71 per unit.

The project has been operational and revenue-generating for the past two years. In 2022-23, the solar project delivered a net PLF (plant load factor) of 27.42 per cent.

ReNew is a leading decarbonisation solutions company listed on Nasdaq.

The ReNew's clean energy portfolio of 13.8 GWs on a gross basis as of September 30, 2023, is one of the largest globally.