Indian renewable power company ReNew will receive INR640 billion (US$7.8 billion) in funding from two Indian government departments to develop clean power projects in the country.
The company signed memorandums of understanding (MoUs) with the Power Finance Corporation (PRC) and REC, two state-owned operations, which will see the government bodies each commit INR320 billion to ReNew’s current and future renewable projects.
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“We have a long-standing relationship with PFC and REC, who are among the biggest lenders to the energy sector,” said Kailash Vaswani, president of corporate finance at ReNew. “These MoUs will help us meet our current and future financing needs and demonstrate ReNew’s ability to raise long-term financing for large-scale green energy projects. We will leverage this relationship for our energy transition goals.”
The groups signed the deal at the clean energy ministerial meeting in the western state of Goa, and the funds could prove vital as ReNew looks to expand its solar portfolio, which the company has grown at an increasing rate in recent months.
Last December, the company’s total renewables portfolio had a capacity of 13.4GW, a 30.2% increase on the previous year, of which 3.7GW were in solar installations. At the time, ReNew had commissioned 57MW of solar assets in the first three quarters of the 2023 financial year, with 32MW of this capacity coming online in Q3 2023.
The company has plans to increase its total solar capacity to 5.5GW, and currently has three projects in India under construction with a combined capacity of 110MW.
ReNew has also moved into other aspects of the solar power sector, such as manufacturing. The company is currently building a solar cell and module manufacturing plant in the state of Gujarat on India’s west coast, which will have an annual production capacity of 2GW of solar modules.
The group announced the project last November, and plans to complete construction by September this year, as it looks to increase its influence over the breadth of the solar power industry.
The news follows Indian electric utility Gujarat Urja Vikas Nigam’s search for two new 600MW solar projects in Gujarat, as India looks to increase the percentage of renewables in its energy mix to 50% by the end of this decade.