Indian independent power producer (IPP) ReNew Power has sold a 300MW solar project in Rajasthan for US$199 million to Infrastructure investment trust India Grid Trust.
ReNew Power said the sale of the project is expected to close in accordance with power purchase agreement (PPA) conditions. About US$8 million will be received as an earn-out on account of change-in-law proceeds, after the first payment is realised by the project.
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Kailash Vaswani, group CFO of ReNew Power, said the company had seen interest in the private markets for “stabilised assets”, adding ReNew Power had the ability to “pursue more lucrative opportunities”.
Located in Jaisalmer, Rajasthan, the project was commissioned in December 2021. It also has a 25-year PPA with Solar Energy Corporation of India (SECI) at a fixed tariff of INR2.71 (US$0.033) per unit.
Last year, ReNew Power planned to expand its renewable energy capacity. It established a joint venture (JV) with Malaysian Gentari’s Indian subsidiary, Gentari Renewables India, to target 5GW of new capacity.
The 50:50 partnership will pursue solar, wind and storage asset opportunities across India, and follows Gentari’s previous purchase of a 49% stake in ReNew’s 403MW Peak Power PV project.
Prior to this, ReNew Power also received INR640 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.