ReNew Power to spend 
2,800 cr to own two assets
Indenting to expand further, renewable energy major ReNew Power plans to acquire two assets with a combined enterprise value of 
2,850 crore which are likely to produce 380-400 crore of EBITDA annually.
As part of the twin acquisition, ReNew would procure L&T Uttaranchal Hydropower Ltd, which owns the Singoli Bhatwari Hydroelectric Project (SBHEP), from L&T Power Development, a wholly-owned subsidiary of the engineering and construction firm L&T. Alongside, it would also gain 260 MW/330 MWp of operating solar projects in Telangana, a definitive contract has been signed.
Furthermore, ReNew would add the project operations team of SBHEP to its team. This acquisition marks ReNew’s entry into the hydropower sector which is likley to play a crucial role in offering innovative renewable energy solutions for ReNew's customers.
ReNew wants to provide firm renewable energy solutions that address the intermittency of standard solar and wind projects. ReNew won two such projects last year including a Peak Power (PP) Project as well as a Round-The-Clock (RTC) Power Project for which ReNew signed a Power Purchase Agreement (PPA) last week. The addition of SBHEP, which has a significant pondage capacity of 2-3 hours, adds 200-300 MWhr of low-cost hydro storage to ReNew's portfolio. This further extends ReNew's strength in storage and reliable power solutions.
The acquired assets are positioned close to ReNew's existing solar projects in Telangana which should offer opportunities to improve productivity, reduce operations and maintenance costs, and make use of ReNew's proprietary monitoring and analytical technology to further improve the output.
Speaking about the acquisitions, Sumant Sinha, Founder, Chairman and CEO of ReNew Power states, "We believe that the acquisition of these assets is expected to earn an attractive return within our targeted range and is proof that ReNew is uniquely positioned to be a big beneficiary of the consolidation of renewable energy assets in India. We are able to overlay our competitive advantages of scale, superior operations through vertical integration and utilisation of our industry-leading monitoring and analytics technology, financing innovation and access to low-cost capital to create significant value through acquisitions. Furthermore, the hydropower acquisition strengthens our ability to provide reliable and dispatchable power to the grid which complements our solar and wind assets."
He further adds, "The acquisition of solar assets in Telangana and the hydropower project in Uttarakhand as well as the recent 200 MW MSEDCL auction win takes our commissioned and contracted capacity to well over 10 GW and sets us on the path to attain 18 GWs of capacity by 2025."
