Companies

ReNew Power inks PPAs, long term agreements for solar power supply

Our Bureau | Updated on: Apr 30, 2022

The projects are likely to be commissioned by the end of year 2023

ReNew Power has signed power purchase agreements (PPAs) for providing around 1.5 gigawatts (GW) of solar power with Centre and State government entities as well as about 0.5 GW of long term purchase agreements with corporate clients. The assets are spread over Rajasthan, Gujarat and Maharashtra

“ReNew Power has signed five solar PPAs with Solar Energy Corporation of India (SECI) and Punjab State Power Corporation (PSPCL), as well as multiple long-term purchase agreements with corporate buyers together totalling around 2 GW,” the NASDAQ-listed firm said in a statement.

This has seen the company’s gross total portfolio jump to around 12.1 GW from 10.2 GW at the beginning of this calendar year, it added.

“The addition of around 1.9 GW comfortably above our threshold returns is a testament to ReNew’s competitive advantages. With this ramp-up in total portfolio addition, ReNew is proud to very much remain at the centre of national efforts to meet India’s ambitious climate goals,” ReNew Power Chairman Sumant Sinha said.

New projects, tariffs

The firm signed two PPAs of 600 megawatts (MW) and 375 MW under the SECI Rajasthan IV scheme, where ReNew will supply electricity at ₹2.18 kWh (unit). The other two PPAs with SECI for 300 MW and 100 MW are under the SECI IX scheme and have a tariff of ₹2.37 per unit.

ReNew recently acquired a beneficial interest in the 300 MW (SECI IX) and 375 MW (SECI Rajasthan IV) projects, subject to the terms of the respective PPAs, the company said.

For the PSPCL PPA of 100 MW, ReNew will supply electricity at ₹2.33 per unit. All the projects are expected to be commissioned by the fourth calendar quarter of 2023.

Corporate buyers have signed long-term agreements with ReNew for the purchase of clean energy or renewable energy credits for around 0.5 GW (491 MW), with energy tariffs ranging between ₹3.06-3.95 per kWh.

The corporates include a large US-based global tech major, Grasim Industries (part of the Aditya Birla Group), and Netmagic (a subsidiary of NTT Communications, Japan). This takes ReNew’s overall corporate portfolio to over 900 MW, making it one of the largest renewable energy solutions providers for corporates.

The solar modules for these projects are expected to be manufactured at the 2 GW module manufacturing facility being built by ReNew and sourced through tolling contracts with domestic suppliers.

Published on April 30, 2022
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