ReNew Power is set to buy operational solar and hydropower generation assets totaling 359 megawatt (MW) for an enterprise value of $384 million.
The acquisition includes 99 MW Singoli Bhatwari Hydroelectric Project (SBHEP) in Uttarakhand from L&T Power Development Ltd and marks ReNew Power entry into the hydropower generation space. The plan also involves 260 MW solar project in Telangana.
SBHEP, situated on the Mandakini river in Rudraprayag district of Uttarakhand, was operationalised in December 2020 and is expected to have a residual life of nearly 35 years.
The hydropower acquisition strengthens companies ability to provide reliable and dispatchable power to the grid which complements its solar and wind assets.
“In a separate transaction, ReNew Power also announced the signing of a definitive agreement to acquire 260 MW/330 MWp of operating solar projects in Telangana. The projects have a 25-year PPA with Northern Power Distribution Company of Telangana Ltd. (NPDCTL) and Southern Power Distribution Company of Telangana Ltd. (SPDCTL) and have been operating for around 4 years,” the statement added.
These operational assets add “approximately INR 3.8 – 4.0 billion (US$ 50.7 – 53.4 million) of EBITDA on a full-year basis,” ReNew Power said in a statement.
Reference- ReNew Power Newsroom, Live Mint, Economic Times, Mercom India
