ReNew Energy Global Plc Finalises Sale of 300 MW Solar Asset in Rajasthan to Anzen for USD 176 Million

ReNew Energy Global Plc has announced a deal with Anzen to divest its entire stake in ReNew Sun Waves Pvt Ltd (RSWPL). The transaction values RSWPL at USD 176 million. This agreement involves the transfer of a 300 MW solar asset to Anzen India Energy Yield Plus Trust. The completion of this sale hinges on fulfilling certain contractual obligations and obtaining necessary lender approvals.

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The enterprise value of USD 176 million may be adjusted based on net current assets and other factors outlined in the agreement. ReNew anticipates an additional USD 17 million as an earn-out. This amount relates to changes in law affecting basic customs duty, safeguard duty, and GST, which will be paid after RSWPL releases the initial payment.

Solar Project Details and Financial Aspects

The solar project, located in Jaisalmer, Rajasthan, has been operational for three years. It operates under a 25-year power purchase agreement with a tariff set at Rs 2.55 per unit. This long-term agreement ensures stable revenue for the project's duration.

ReNew's decision to sell RSWPL is part of its strategic business moves. The company aims to optimise its portfolio by focusing on core assets and exploring new opportunities. The sale aligns with ReNew's broader strategy to enhance operational efficiency and financial performance.

The transaction is expected to conclude once all conditions are met. These include receiving lender approval and completing other contractual obligations. ReNew's regulatory filing confirms the signing of a definitive agreement for this sale.

This move reflects ReNew's commitment to adapting to changing market dynamics. By divesting non-core assets, ReNew can allocate resources more effectively towards growth areas. The deal with Anzen represents a significant step in this strategic direction.

ReNew's collaboration with Anzen highlights the growing interest in renewable energy investments in India. As the country continues to focus on sustainable energy solutions, such partnerships are likely to become more common. This transaction underscores the potential for growth and development in India's renewable energy sector.