ReNew Power Acquires 359 MW Hydro & Solar Assets

• ReNew Power has forayed into hydropower domain with the acquisition of a hydropower company in India
• It has also bought 260 MW AC solar capacity in Telangana, close to its existing solar projects
• Entry into hydropower will enable it to expand its business offerings while adding 200 – 300 MWhr of low-cost hydro storage to ReNew's portfolio

Goldman Sachs and Abu Dhabi Investment Authority (ADIA) backed Indian renewable energy company ReNew Power Private Limited is diversifying its business operations to comprise hydropower. This expansion into a different power generation technology, explained the management, further extends the company's leadership in storage and reliable power solutions, as it enables the company to expand its offerings and provide value-added solutions to the market.

ReNew Power said it will acquire L&T Uttaranchal Hydropower Ltd., from L&T Power Development Ltd., which owns 99 MW Singoli Bhatwari Hydroelectric Project (SBHEP) in Uttarakhand. It explained, "The addition of SBHEP, which has a significant pondage capacity of 2 – 3 hours, adds 200 – 300 MWh of low-cost hydro storage to ReNew's portfolio."

Separately, the renewable energy player has also entered definitive agreements to acquire 260 MW AC/330 MW DC, operational since last 4 years in Telangana. The assets are located close to the company's existing solar projects 'which should offer opportunities to enhance productivity, reduce operations and maintenance costs, and utilize ReNew's proprietary monitoring and analytical technology to further boost output'.

These projects have a 25-year power purchase agreement (PPA) with Northern Power Distribution Company of Telangana Ltd. (NPDCTL) and Southern Power Distribution Company of Telangana Ltd. (SPDCTL).

Both the transactions have a combined enterprise value of INR 28.5 billion ($384 million), and expected to generate INR 3.8 billion to INR 4.0 billion ($50.7 million to $53.4 million) of EBITDA annually.

Company's Founder, Chairman and CEO Sumant Sinha said the company's total commissioned and contracted capacity is now well over 10 GW, and puts ReNew Power firmly on path to achieve 18 GW by 2025.

ReNew Power recently signed India's 1^st round-the-clock electricity supply PPA with SECI for 400 MW capacity which will enable the development of 900 MW of wind and 400 MW of solar power (see India's 1^st RTC PPA Signed Between ReNew Power & SECI).

The company is also getting ready for a listing on the NASDAQ after it merges with a blank cheque company called RMG Acquisition Corporation II (see ReNew Power Getting Ready For NASDAQ Listing).