ReNew Power signs five solar PPAs with SECI and PSPCL

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ReNew Power has signed five solar PPAs with Solar Energy Corporation of India (SECI) and Punjab State Power Corporation (PSPCL), as well as multiple long-term purchase agreements with corporate buyers together totalling around 2 GW.

This has seen the company’s gross total portfolio jump to ~12.1 GW from 10.2 GW at the beginning of this calendar year.

The new utility solar projects will be located in the western state of Rajasthan and have flat tariffs over 25 years. Four solar PPAs have been signed with SECI, an entity owned by the Government of India that has a AA+ domestic debt rating by ICRA. The fifth PPA is with PSPCL.

Two PPAs of 600 MW and 375 MW are under the SECI Rajasthan IV scheme, where ReNew will supply electricity at Rs 2.18/kWh (~US 2.9 ¢/kWh). The other two PPAs with SECI for 300 MW and 100 MW are under the SECI IX scheme and have a tariff of Rs 2.37/kWh (~US 3.1 ¢/kWh). ReNew recently acquired a beneficial interest in the 300 MW (SECI IX) and 375 MW (SECI Rajasthan IV) projects, subject to the terms of the respective PPAs.

For the PSPCL PPA of 100 MW, ReNew will supply electricity at Rs 2.33/kWh (~US 3.0 ¢/kWh). All the projects are expected to be commissioned by the fourth calendar quarter of 2023.

Corporate buyers have signed agreements with ReNew for the purchase of clean energy or renewable energy credits for approximately 0.5 GW (491 MW), with energy tariffs ranging between Rs 3.06 – Rs 3.95/kWh (~US 4.0 ¢/kWh – ~US 5.2 ¢/kWh).

The corporates include a US-based global tech major, Grasim Industries, and Netmagic, a subsidiary of NTT Communications, Japan. This takes ReNew’s overall corporate portfolio to over 900 MW, making it one of the largest renewable energy solutions providers for corporates.

The solar modules are expected to be manufactured at the 2 GW module manufacturing facility being built by ReNew and sourced through tolling contracts with domestic suppliers.

ReNew recently also announced an investment by Mitsui & Co in its 1.3 GW renewable energy project, and a joint venture with Indian Oil Corporation and Larsen & Toubro for developing green hydrogen capacity in India.