Torrent Power aims to buy 1.1 GW of clean energy projects from RenNew: Report

Ahmedabad-based energy firm Torrent Power is planning to buy clean energy projects aggregating 1.1 gigawatts (GW) from ReNew Energy Global Plc. A report by Mint said that the deal, worth around $1.2 billion, is still in process, as revealed by two individuals associated with the development. The company has made a non-binding offer (NBO) for 350 megawatts (MW) and 750 MW of ReNew’s solar and wind power assets, respectively, with an equity value of about $450 million. However, one of the sources clarified that ReNew has not designated any sell-side banks for this transaction. The valuation discussions between Torrent and ReNew are now in progress. ReNew Power, established by Sumant Sinha in 2011, is one of the pioneers of India’s green economy. The world’s greatest energy transition initiative is presently underway, and deal activity in India’s green energy sector is proceeding against that backdrop. The business now has a portfolio of 13.4 GW, with 7.7 GW commissioned capacity. As part of its capital recycling strategy, ReNew plans to sell these operating clean energy capacities and use the revenues to develop new clean energy assets, as per earlier reports by Mint. ReNew has joined forces to co-invest in transmission projects with Norfund, the Norwegian government-owned investment company, and KLP, the country’s largest pension provider. Following a partnership between Elsewedy Electric SAE and ReNew Energy Global PlC’s subsidiary ReNew Power Pvt. Ltd, an $8 billion green hydrogen plant will be built in the Suez Canal Economic Zone. Renewable energy sources account for 1.068GW of Torrent Power’s total 4.16GW generation capacity. A 715MW capacity for renewable energy is also being developed by the organisation. An agreement to purchase a 50MW solar power facility in Maharashtra was previously signed between Torrent Power and Lightsource Renewable Energy. Torrent Power is not averse to adopting an inorganic path to expand its business. As part of the privatization process for electricity distribution companies in the Union territories (UTs), it had submitted the highest bid for buying the business in Dadra and Nagar Haveli, and Daman and Diu. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.