ReNew Energy Global Plc is currently in discussions with Sembcorp Industries Ltd from Singapore regarding the potential sale of solar energy projects totaling 350 megawatts (MW). The deal is estimated to be valued at approximately $241 million at the enterprise level and around $121 million in terms of equity.
ReNew Energy is a leading renewable energy company in India, focusing on the development, construction, and operation of wind and solar energy projects. With a strong commitment to sustainability, the company plays a crucial role in India’s transition to clean energy. The company’s innovative approach and state-of-the-art technology have enabled it to become a key player in the renewable energy sector.
Sembcorp Industries, based in Singapore, is a leading utilities and marine group. The company has a strong presence in Singapore and internationally, with a focus on providing sustainable solutions in energy, water, and urban development. Sembcorp is known for its expertise in integrated utilities, renewable energy, and environmental services, contributing to the global transition towards a more sustainable future.
Previously, there was a proposed deal for 1.1 gigawatts (GW) that included ReNew’s solar (350 MW) and wind power assets (750 MW). However, this deal fell through due to a valuation gap concerning the wind assets. Additionally, Ahmedabad-based Torrent Power had previously submitted a non-binding offer (NBO) for ReNew’s solar and wind power assets, totaling 1.1 GW.
The latest deal being discussed focuses solely on the sale of solar power assets, excluding the previously planned wind power assets. According to one of two sources familiar with the matter, the current agreement revolves around 350 MW of solar projects, with the 750 MW wind assets not included in this potential transaction. ReNew currently boasts a clean energy portfolio of 13.8 GW.
This proposed deal aligns with its strategy to divest operational, clean energy capacity and reinvest the proceeds in developing new clean energy assets. ReNew has been exploring various opportunities, such as considering the sale of a 30% stake in its 2.3-GW commercial and industrial projects. Additionally, it has announced an equal joint venture (JV) with Gentari Sdn Bhd to develop a 5 GW capacity.
In this venture, Gentari Renewables India Pte. Ltd will hold a 50% equity stake in ReNew’s utility-scale 5 GW renewable energy portfolio, which includes solar, wind, and energy storage projects. Meanwhile, Singapore Exchange-listed Sembcorp has a renewable energy capacity of 13.8 GW, having added 4 GW to its portfolio since the end of 2022 through a combination of acquisitions and organic growth.
Sembcorp aims to achieve 25 GW of installed capacity by 2028. A recent development involves Rahul Munjal-led Hero Future Energies Pvt. Ltd, which is looking to engage JP Morgan for a pre-initial public offering (IPO) fundraising, with an expected equity value of around $200 million. Gentari Sdn Bhd, a unit of Malaysia’s state-run oil and gas company Petronas, has won the bid for Fortum Oyj’s Indian solar projects totaling 185 MW, in a deal valued at around $200 million.
India’s renewable energy capacity stands at 180.79 GW, including 73.31 GW of solar and 44.73 GW of wind power. The country’s power demand has risen over the past two fiscal years, hitting new highs during summers. This winter (2023-24), demand has remained high compared to the previous year, with peak demand reaching 213.62 GW in December 2023, up 3.6% from 206.23 GW in December 2022.
ReNew Energy Global Plc reported a net loss of ₹321.6 crore for the quarter ending December 2023, a reduction from the ₹401.3 crore loss reported in the same period the previous fiscal year. The company’s total income for the quarter was ₹1,929 crore, a nearly 20% increase from ₹1,607.7 crore in Q3 FY23.
