ReNew Power to acquires two renewable assets worth $384 million in Uttarakhand, Telangana

India’s leading independent power producer, ReNew Power has signed binding agreements for the acquisition of two renewable energy assets, a 99megawatt (MW) hydropower project in Uttarakhand and 260 MW solar projects in Telangana, for $384 million.

“We believe that the acquisition of these assets are expected to earn an attractive return within our targeted range,” said Sumant Sinha, founder, chairman, and chief executive officer, ReNew Power.

The acquisition of the solar assets in Telangana, and the hydropower project in Uttarakhand along with the recent 200 MW MSEDCL (Maharashtra State Electricity Distribution Company Limited) auction win has taken the total commissioned and contracted capacity to over 10 gigawatts (GW), setting the company on its target of achieving 18 GW of capacity by 2025.

Uttaranchal deal

ReNew will acquire L&T Uttaranchal Hydropower Ltd, which owns the Singoli Bhatwari Hydroelectric Project (SBHEP), from L&T Power Development Ltd, a wholly-owned subsidiary of engineering and construction firm L&T.

As part of the transaction, ReNew will add the project operations team of SBHEP to its team. SBHEP is situated on the Mandakini river in Rudraprayag district of Uttarakhand, was operationalised in December 2020 and is expected to have a residual life of nearly 35 years.

With this acquisition, ReNew has entered into the hydropower sector and SBHEP will add 200-300 MW of low-cost hydro storage to its portfolio. ReNew Power’s Sinha added that the company will be looking to acquire more hydro assets in the future.

Telengana acquisition

ReNew Power will acquire 260 MW/330 MWp of operating solar projects in Telangana. The projects have a 25-year PPA with Northern Power Distribution Company of Telangana Ltd (NPDCTL) and Southern Power Distribution Company of Telangana Ltd (SPDCTL) and have been operating for around four years.

The acquired assets are located close to ReNew’s existing solar projects in Telangana which should offer opportunities to enhance productivity, reduce operations and maintenance costs, and utilise ReNew’s proprietary monitoring and analytical technology to further boost output.

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