Published on November 27th, 2017 | by Saurabh0
India’s ReNew Power Nears 2.5 Gigawatt Capacity With New Wind Acquisition
November 27th, 2017 by Saurabh
One of India’s leading renewable energy IPPs, ReNew Power Ventures, has moved closer to a 2.5 gigawatt portfolio following a recent acquisition of 103 megawatts of wind energy capacity.
ReNew Power Ventures announced that it will acquire three wind energy projects in the state of Andhra Pradesh for Rs 1,000 crore ($153 million). The acquisition marks a major win for ReNew which, reportedly, had to compete with ‘a dozen Indian and foreign bidders.’
The acquisition of wind energy assets from KC Thapar is in line with the trend that saw several companies that do not have renewable energy as their core business sell assets as the tariffs began to fall.
DLF, India’s largest commercial real estate developer, sold off more than 200 megawatts of wind energy capacity to multiple companies in 2013. The Welspun Group sold more than 1,000 megawatts of renewable energy capacity to Tata Power Renewable Energy last year. Hero Future Energies acquired 83.5 megawatts wind energy assets from LNJ Bhilwara Group.
The projects sold by KC Thapar Group to ReNew Power have power purchase agreements signed with power distribution companies of Andhra Pradesh. Under the agreements, the projects sell electricity at Rs 4.80/kWh (7.3¢/kWh), which is much higher than the current lowest wind energy tariff of Rs 2.64/kWh (4.0¢/kWh).
As India continues on the path of competitive auctions in the wind energy sector, more similar acquisitions can be expected. ReNew itself participated in several solar and wind energy auctions, rather unsuccessfully, due to high competition.
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