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ReNew to Divest 300 MW Solar Project to Anzen India for Rs 176 Million

ReNew Energy has entered into a definitive agreement to sell its subsidiary, ReNew Sun Waves, which operates a 300 MW solar project located in Jaisalmer, Rajasthan. The buyer, Anzen India Energy Yield Plus Trust, will acquire 100% ownership and economic interest in the solar project for an enterprise value of approximately Rs 176 million. The transaction is subject to adjustments for net current assets and other conditions as outlined in the agreement.

Key Terms of the Deal

In addition to the base transaction value of Rs 176 million, ReNew Energy anticipates earning an additional Rs 17 million as an earn-out. This contingent payment is linked to proceeds arising from a change in law, which includes increases in customs duties, safeguard duties, and goods and services tax. The earn-out will be realized once ReNew Sun Waves receives the initial payment

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The 300 MW solar project, which has been operational for around three years, benefits from a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI). The PPA has a 25-year duration with a tariff of Rs 2.55/kWh, providing long-term revenue stability.

Transaction Closure

The deal is expected to conclude once all contractual obligations are met, including the fulfillment of conditions precedent such as lender approvals. This sale marks another significant step in ReNew’s ongoing strategy to optimize its portfolio and streamline its assets.

Background on Anzen India Energy Yield Plus Trust

Anzen India Trust, managed by Edelweiss Real Assets Managers, is a growing player in India’s renewable energy sector. The Trust recently acquired a 100% stake in two power transmission projects, which together span around 855 circuit kilometers (ckm) and feature substations with a total transformation capacity of 1,400 MVA. The Trust also holds a right of first offer to acquire a 74% shareholding in 12 solar projects with a combined capacity of approximately 813 MW.

ReNew’s Recent Moves and Financials

In June 2024, ReNew Power also announced the acquisition of 471.65 MW of wind assets and 56.25 MW of solar projects spread across eight Indian states. The total enterprise value of these projects was estimated to be Rs 30 billion (Rs 369 million). This acquisition strategy is part of ReNew's broader focus on scaling its renewable energy footprint.

For the third quarter of the financial year 2023, ReNew Power reported a narrower net loss of Rs 400 Cr during the same period in 2022. The company attributed the improved financial performance to increased operating capacity, the receipt of a late payment surcharge from customers, and an insurance claim, which helped offset the negative impact of lower wind resources.

The sale of the 300 MW solar project to Anzen India Energy Yield Plus Trust marks a strategic move by ReNew Energy to streamline its portfolio and capitalize on its growing renewable energy footprint. The deal is also indicative of the growing activity in India’s renewable energy market, with significant investments and acquisitions taking place across the solar and power transmission sectors.