New Delhi, India (Natural Energy News): In a strategic move to bolster its capital portfolio, ReNew, the decarbonization solutions firm, has inked a deal to sell a 300 MW solar project located in Jaisalmer to India Grid Trust for an impressive $199 million. The transaction, expected to close in accordance with Power Purchase Agreement (PPA) conditions, reinforces the strong investor interest in assets developed by ReNew.
This sale aligns with ReNew's overarching strategy to enhance shareholder value through capital recycling and reinvestment in higher-return opportunities. The company aims to capitalize on the robust interest in the private markets for high-quality stabilized assets, showcasing its commitment to disciplined capital allocation.
Upon the transfer of outstanding debt to the buyer, the transaction will result in a substantial cash inflow of approximately $82 million for ReNew. This includes change-in-law proceeds, emphasizing the financial strength and value creation potential of ReNew's asset portfolio.
Kailash Vaswani, Group CFO of ReNew, highlighted the company's commitment to unlocking value through asset sales while pursuing lucrative opportunities. The disciplined capital allocation strategy ensures that ReNew continues to be a key player in the evolving clean energy landscape.
The solar project in Jaisalmer, operational since December 2021 under ReNew Solar Urja, boasts a 25-year Power Purchase Agreement with the Solar Energy Corporation of India (SECI). With a fixed tariff of INR 2.71 per unit, the project has demonstrated operational excellence, contributing to ReNew's revenue generation for two years. The net Plant Load Factor (PLF) recorded an impressive 27.42% in the 2022-23 period.
ReNew, a Nasdaq-listed company, stands as a leading decarbonization solutions provider with a clean energy portfolio of 13.8 GWs on a gross basis as of September 30, 2023. This sizable portfolio positions ReNew as one of the largest players globally in the clean energy sector.
As ReNew continues to explore strategic opportunities and fortify its position in the clean energy landscape, the sale of the 300 MW solar project marks a significant milestone in its capital recycling journey.
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