Indian renewable energy developer ReNew has entered into a share purchase agreement with India Grid Trust to sell its 300MW solar project, ReNew Solar Urja, located in Jaisalmer, Rajasthan. The total enterprise value of the transaction amounts to US$199 million.
Commissioned in December 2021, ReNew Solar Urja operates under a 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) at a fixed tariff of INR 2.71 per unit. The project has been operational and generating revenue for the past two years, achieving a net Plant Load Factor (PLF) of 27.42% in the fiscal year 2022-23.
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The sale of ReNew Solar Urja Private Limited (RSUPL) is anticipated to conclude in accordance with the PPA conditions. An additional approximately US$8 million is expected to be received as an earn-out, contingent on change-in-law proceeds, following the realization of the first payment by RSUPL.
Post the transfer of outstanding debt to the buyer, the transaction will result in a cash inflow of approximately US$82 million for ReNew, including change-in-law proceeds. Kailash Vaswani, the group chief financial officer of ReNew, emphasized the commitment to disciplined capital allocation and the strategic move's alignment with the company's goal of enhancing shareholder value through asset recycling.
