New Delhi: NASDAQ-listed ReNew Energy Global Plc is in talks with Sembcorp Industries Ltd of Singapore to sell solar power projects totaling 350 megawatts (MW), with the deal estimated to be valued at about $241 million at the corporate level and about $121 million USD in. terms of equity, two people aware of the development said.
This earlier proposed deal for 1.1 gigawatts (GW) consisting of ReNew’s solar (350 MW) and wind power assets (750MW) could not be agreed due to a valuation gap on wind assets. Ahmedabad-based Torrent Power also earlier submitted a non-binding offer (NBO) for ReNew’s 1.1 GW solar and wind assets.
The current proposed deal in the works involves only the sale of solar energy assets and not the wind energy assets as was earlier planned.
“The current deal in the works is only for 350 MW of solar projects, with the 750 MW wind assets not part of this proposed transaction,” said one of the two people aware of the development.
Questions emailed to spokespeople for ReNew Energy Global Plc, Sembcorp Industries Ltd and Torrent Power on Tuesday evening remained unanswered.
ReNew has a clean energy portfolio of 13.8 GW. The proposed deal is part of its plan to sell operational, clean energy capacity and reinvest the proceeds in building new clean energy assets.
ReNew has explored several opportunities, including selling a 30% stake in its 2.3-GW commercial and industrial projects. It also announced an equal joint venture (JV) with Gentari Sdn Bhd to develop 5 gigawatt (GW) capacity, wherein Gentari Renewables India Pte. Ltd will have a 50% equity investment in ReNew’s utility scale 5 GW renewable energy portfolio consisting of solar, wind and energy storage projects.
For its part, Singapore Exchange-listed Sembcorp has renewable energy capacity of 13.8 GW and has added 4 GW to its portfolio from end-2022 through a mix of acquisitions and organic growth. It aims for 25 GW of installed capacity by 2028.
Given the growing demand for electricity in the country, and India’s ambitious green energy trajectory; there are several deals in play as reported by Mint.
The latest case is Rahul Munjal-led Hero Future Energies Pvt. Ltd is looking to hire JP Morgan for pre-initial public offering (IPO) fundraising. The deal is expected to have a stock value of around $200 million.
Also, Malaysia’s state-owned oil and gas company Petronas Gentari Sdn Bhd’s unit emerged as the winning bidder for Fortum Oyj’s 185 MW Indian solar projects, in a deal having an enterprise value of about $200 million.
India has an installed renewable energy capacity of 180.79 GW, which includes 73.31 GW of solar and 44.73 GW of wind energy capacity.
India’s power demand increased in the previous two fiscals, reaching new record highs in the summers. Also this winter season (2023-24) the demand was higher every year. The maximum power demand in December 2023 was 213.62 GW, 3.6% higher than 206.23 GW in December 2022.
On 20 February, ReNew Energy Global Plc reported a net loss of ₹321.6 crore for the quarter ended December 2023. The losses narrowed from ₹401.3 crore reported in the corresponding period of the previous fiscal. Its total revenue during the quarter under review was ₹1,929 crore, nearly 20% higher than ₹1,607.7 crore earned during Q3 FY23.
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Published: 29 Feb 2024, 08:59 IST
(tagsTo Translate)Renew solar energy projects