The transaction is expected to be closed based on the PPA conditions and emphasises the company's growing interest in the renewable space in India
ReNew, a decarbonisation solutions firm, has signed an agreement to sell a 300 MW solar project to India Grid Trust for $199 million. The transaction is expected to be closed based on the PPA (Power Purchase Agreement) conditions, according to a statement from the company.
The total enterprise value of this sale is $199 million. In addition, an earn-out of approximately $8 million is expected to be received by ReNew as change-in-law proceeds after the first payment is realised and realised by RSUPL (ReNew Solar Urja Private Limited).
The sale underlines strong investor interest in assets developed by ReNew and aligns with the company's strategy to enhance shareholder value through capital recycling and investment into higher-return opportunities.
The transaction would result in approximately USD 82 million in cash inflow, including change-in-law proceeds for ReNew.
ReNew's Group CFO has pointed to the company's commitment towards capital allocation discipline and shareholder value enhancement through asset recycling.
The statement also reaffirms the company's ability to unlock value by selling assets and pursuing more lucrative opportunities in light of the heightened interest in private markets for high-quality stabilised assets.
ReNew Solar Urja, a solar energy project in Jaisalmer, Rajasthan, was commissioned in December 2021. The project has generated revenue for the past two years. It has a PPA (Power Purchase Agreement) fixed rate of Rs 2.71 per unit with SECI (Solar Energy Corporation of India). In 2022–23, the solar project delivered a net PLF (plant load factor) of 27.42 percent.