ReNew Inks Deal to Offload 300 MW Solar Project for 199 Million

ReNew, a leading decarbonization solutions company in India, disclosed the signing of a Share Purchase Agreement with India Grid Trust for the sale of a 300 MW solar project in Rajasthan—ReNew Solar Urja Private Limited—at a total enterprise value of $199 million. The transaction is anticipated to conclude in line with Power Purchase Agreement (PPA) conditions, with an additional earn-out of approximately $8 million expected due to change-in-law proceeds after the initial payment is received by RSUPL.

This sale underscores robust investor interest in ReNew-developed assets and aligns with the company’s strategy to boost shareholder value through capital recycling and investment in higher-return opportunities. Following the transfer of outstanding debt to the buyer, the transaction will bring about a cash inflow of approximately $82 million, inclusive of change-in-law proceeds for ReNew.

Mr. Kailash Vaswani, Group CFO of ReNew, commented on the transaction, stating, “We are committed to disciplined capital allocation and enhancing shareholder value through asset recycling. This reaffirms our ability to unlock value through asset sales and pursue more lucrative opportunities. We continue to observe interest in the private markets for high-quality stabilized assets.”

ReNew Solar Urja, situated in Jaisalmer, Rajasthan, commenced operations in December 2021. The project holds a 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of INR 2.71 per unit. Having been operational and generating revenue for the past two years, the solar project achieved a net PLF of 27.42% in 2022-23.