IndiGrid set to purchase ReNew's 300 MW Rajasthan solar project
POWER & RENEWABLE ENERGY

IndiGrid set to purchase ReNew's 300 MW Rajasthan solar project

IndiGrid, the power infrastructure investment trust, has recently entered into a share purchase agreement to acquire ReNew's 300 MW (AC) solar project in Rajasthan. The enterprise valuation for this acquisition is Rs 15.5 billion, including working net capital and cash, totaling Rs 16.5 billion.

The solar project, known as ReNew Solar Urja (RSUPL), situated in Jaisalmer, has been operational since December 2021 and holds a 25-year power purchase agreement with Solar Energy Corporation of India (SECI) at Rs 2.71/kWh.

Having been operational and generating revenue for the past two years, the solar project achieved a net plant load factor of 27.42% in the fiscal year 2022-23.

Harsh Shah, the Chief Executive Officer and Whole Time Director of IndiGrid, expressed confidence in the strategic value of renewable energy projects in India's energy transition. He stated, "RSUPL is a high-quality solar generation asset located in one of the highest irradiation regions of India with a reasonable operating track record. In line with our strategic focus, RSUPL will help us ensure sustainable growth of our portfolio and aid in long-term cash-flow addition."

In adherence to the terms of the definitive agreements and the power purchase agreement (PPA), IndiGrid will acquire a 100% shareholding and management control of RSUPL, as outlined in the lock-in restrictions.

Kailash Vaswani, the Group CFO of ReNew, affirmed the commitment to disciplined capital allocation and shareholder value enhancement through asset recycling. He stated, "This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities."

Upon the completion of the transaction and the transfer of outstanding debt to the buyer, it is anticipated that the cash inflow for ReNew will be approximately $ 82 million, inclusive of change-in-law proceeds.

Notably, in July of the previous year, ReNew entered into a 50:50 joint venture agreement with Gentari, a clean energy solutions provider, to develop solar, wind, and energy storage assets, aiming to achieve a clean power capacity target of 5 GW in India.

Additionally, earlier this month, IndiGrid secured letters of intent from REC Power Development and Consultancy for the construction of two greenfield interstate transmission projects.

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IndiGrid, the power infrastructure investment trust, has recently entered into a share purchase agreement to acquire ReNew's 300 MW (AC) solar project in Rajasthan. The enterprise valuation for this acquisition is Rs 15.5 billion, including working net capital and cash, totaling Rs 16.5 billion. The solar project, known as ReNew Solar Urja (RSUPL), situated in Jaisalmer, has been operational since December 2021 and holds a 25-year power purchase agreement with Solar Energy Corporation of India (SECI) at Rs 2.71/kWh. Having been operational and generating revenue for the past two years, the solar project achieved a net plant load factor of 27.42% in the fiscal year 2022-23. Harsh Shah, the Chief Executive Officer and Whole Time Director of IndiGrid, expressed confidence in the strategic value of renewable energy projects in India's energy transition. He stated, RSUPL is a high-quality solar generation asset located in one of the highest irradiation regions of India with a reasonable operating track record. In line with our strategic focus, RSUPL will help us ensure sustainable growth of our portfolio and aid in long-term cash-flow addition. In adherence to the terms of the definitive agreements and the power purchase agreement (PPA), IndiGrid will acquire a 100% shareholding and management control of RSUPL, as outlined in the lock-in restrictions. Kailash Vaswani, the Group CFO of ReNew, affirmed the commitment to disciplined capital allocation and shareholder value enhancement through asset recycling. He stated, This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities. Upon the completion of the transaction and the transfer of outstanding debt to the buyer, it is anticipated that the cash inflow for ReNew will be approximately $ 82 million, inclusive of change-in-law proceeds. Notably, in July of the previous year, ReNew entered into a 50:50 joint venture agreement with Gentari, a clean energy solutions provider, to develop solar, wind, and energy storage assets, aiming to achieve a clean power capacity target of 5 GW in India. Additionally, earlier this month, IndiGrid secured letters of intent from REC Power Development and Consultancy for the construction of two greenfield interstate transmission projects.

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