Torrent Power Ltd on Saturday informed that it has entered into a Share Purchase Agreement (SPA) with SkyPower Southeast Asia III Investments Ltd and SkyPower Southeast Asia Holdings 2 Ltd to acquire Sunshakti Solar Power Projects Private Ltd - a special purpose vehicle.
The SPA is for the acquisition of 100 per cent securities of the SPV, which operates 50 Megawatts (MW) of solar power project in Telangana.
Torrent Power informed that the enterprise value for the acquisition is approximately ₹417 crore, which is subject to Closing Price Adjustments, if any.
The acquisition is further subject to customary conditions for transaction closure, it added.
There is a long-term Power Purchase Agreement (PPA) signed for the Project with Northern Power Distribution Company of Telangana Limited (NPDCTL) for a period of 25 years at a fixed tariff of approximately ₹5.35 per kWh. The project has a remaining useful life of approximately 20 years, making it a promising bet for Torrent, which is adding new capacities to its renewable portfolio.
Torrent Power currently has an aggregate installed generation capacity of about 4.1 gigawatts (GW), which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0 GW). It also has a capacity of 0.4 GW of renewable energy plants under development.
With the acquisition of 50 MW Solar Power Plant, Torrent Power's total generation capacity, including under development portfolio, will reach to ~4.6 GW with renewable portfolio of more than ~1.5 GW, Torrent Power said in a statement.