ReNew in talks with Singapore’s Sembcorp to sell 350 MW solar projects

This earlier proposed deal for 1.1 gigawatts (GW) comprising ReNew’s solar (350 MW) and wind power assets (750MW) couldn’t be agreed upon to due to valuation gap on wind assets. Ahmedabad-based Torrent Power had also earlier submitted a non-binding offer (NBO) for ReNew’s solar and wind power assets totalling 1.1 GW.

The current proposed deal in the works involves only the sale of solar power assets and not the wind power 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.

Queries emailed to the spokespersons of 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 been exploring several opportunities, including selling a 30% stake in its 2.3-GW commercial and industrial projects. It has also announced an equal joint venture (JV) with Gentari Sdn Bhd to develop 5 giga watt (GW) capacity, wherein Gentari Renewables India Pte. Ltd will have a 50% equity stake in ReNew’s utility scale 5 GW renewable energy portfolio comprising solar, wind and energy storage projects.

On its part, Singapore Exchange-listed Sembcorp has a renewable energy capacity of 13.8 GW and has added 4 GW to its portfolio since end-2022 through a mix of acquisitions and organic growth. It is targeting 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 in point being Rahul Munjal-led Hero Future Energies Pvt. Ltd looking to hire JP Morgan for a pre-initial public offering (IPO) fundraising. The deal is expected to have an equity value of around $200 million.

Also, Malaysia’s state-run oil and gas company, Petronas’s unit Gentari Sdn Bhd emerged as the winning bidder for Fortum Oyj’s Indian solar projects totalling 185 MW, in a deal having an enterprise value of around $200 million.

India has an installed renewable energy capacity of 180.79 GW, which includes 73.31 GW solar and 44.73 GW of wind power capacity.

India’s power demand has been increasing in the previous two fiscals, reaching new record highs in the summers. This winter season (2023-24), too, the demand has been higher on a year-on-year basis. The peak 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 income 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 AM IST