ReNew Energy’s Possible Divestiture of 350 MW Solar Projects to Sembcorp

ReNew Energy Global Plc is reportedly in discussions with Singapore’s Sembcorp Industries Ltd for the sale of its solar energy projects, which have a total capacity of 350 megawatts (MW). The deal is estimated to be worth approximately $241 million at the enterprise level and $121 million in equity, according to sources familiar with the matter. Previously, a broader agreement to sell 1.1 gigawatts (GW) of ReNew’s energy assets, including both solar and wind projects, did not materialize due to disagreements over the valuation of the wind assets. Torrent Power, based in Ahmedabad, had also shown interest in these assets with a non-binding offer but the current discussions are focused solely on the solar projects, leaving out the 750 MW of wind power assets.

ReNew Energy, which boasts a substantial clean energy portfolio of 13.8 GW, aims to divest some of its operational assets to fund the development of new clean energy projects. This strategy includes selling a significant stake in its commercial and industrial projects and forming a joint venture with Gentari Sdn Bhd for developing a 5 GW renewable energy portfolio.

Sembcorp Industries, has been actively expanding its renewable energy capacity, now standing at 13.8 GW. It has set a target to reach 25 GW of installed capacity by 2028, highlighting the increasing investment and growth opportunities within India’s renewable energy sector. This comes amidst a surge in electricity demand and India’s ambitious goals for expanding its green energy infrastructure.