Renew Energy Explores $241 Million Deal with Sembcorp for 350 MW Solar Projects

In a significant development in the renewable energy sector, NASDAQ-listed ReNew Energy Global Plc is reportedly in advanced talks with Singapore’s Sembcorp Industries Ltd to sell solar energy projects totaling 350 megawatts (MW). The deal, estimated to be valued at approximately $241 million at the enterprise level and around $121 million in equity, marks a strategic move for both entities in India’s thriving green energy landscape.

Details of the Proposed Deal: The earlier proposed deal, encompassing 1.1 gigawatts (GW) comprising ReNew’s solar (350 MW) and wind power assets (750MW), faced challenges due to a valuation gap on wind assets. The current discussions focus exclusively on the sale of solar power assets, amounting to 350 MW, with the wind assets no longer part of the transaction.

Queries sent to the spokespersons of ReNew Energy Global Plc, Sembcorp Industries Ltd, and Torrent Power regarding this development remained unanswered at the time of reporting.

Strategic Moves by ReNew: ReNew, with a robust clean energy portfolio of 13.8 GW, aims to streamline its operations by divesting operational, clean energy capacity. The proceeds from such sales will be reinvested in the development of new clean energy assets. This aligns with ReNew’s broader strategy to stay dynamic in the evolving renewable energy market.

Sembcorp’s Renewable Energy Ambitions: Sembcorp Industries Ltd, listed on the Singapore Exchange, boasts a renewable energy capacity of 13.8 GW. With an ambitious target of achieving 25 GW of installed capacity by 2028, Sembcorp has been actively expanding its portfolio through acquisitions and organic growth.

Growing Opportunities in India’s Renewable Sector: India, with an installed renewable energy capacity of 180.79 GW, continues to witness increasing demand for electricity. Against the backdrop of the country’s ambitious green energy trajectory, numerous deals are underway. This includes Hero Future Energies’ pre-IPO fundraising, and Petronas’s unit Gentari Sdn Bhd’s successful bid for Fortum Oyj’s Indian solar projects.

In Shorts: As ReNew Energy Global Plc navigates discussions with Sembcorp Industries Ltd for the sale of 350 MW solar projects, the renewable energy landscape in India remains dynamic, reflecting the industry’s response to the escalating demand for sustainable power sources.

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