Torrent Power to buy clean energy capacity from ReNew

Torrent Power Ltd is in talks to buy clean power projects totalling 1.1 gigawatts (GW) from ReNew Energy Global Plc at an enterprise value of around $1.2 billion.

Ahmedabad-based Torrent Power has submitted a non-binding offer (NBO) for ReNew’s solar and wind power assets of 350 megawatts (MW) and 750MW, respectively, at an equity value of around $450 million, the people cited above said on the condition of anonymity, adding discussions on valuation are continuing.

Torrent Power, one of India’s largest integrated power utilities with a presence across generation, transmission and distribution, has been active in India’s green energy deals space and was earlier in fray for US private equity firm Global Infrastructure Partners’ (GIP) Indian clean energy platform Vector Green Energy, that was finally bought by Singapore’s Sembcorp Industries Ltd.

While a ReNew Energy Global Plc spokesperson declined to comment, queries mailed to Torrent Power spokesperson on Thursday night remained unanswered till press time.

Torrent Power has a 4.16GW generation capacity, of which renewables account for 1.068GW. The Torrent Group firm is also developing 715MW of renewable energy capacity. Torrent Power earlier signed a pact with Lightsource Renewable Energy to buy a 50MW solar power plant in Maharashtra. Torrent Power also supplies electricity to 3.94 million customers in Dadra and Nagar Haveli, Daman and Diu, Ahmedabad, Gandhinagar, Surat, Dahej special economic zone, Dholera special investment region, Bhiwandi, Shil, Mumbra, Kalwa and Agra.

Founded by Sumant Sinha in 2011, ReNew Power is among the earliest entrants in India’s green economy. The company now has a 13.4GW portfolio with a commissioned capacity of 7.7GW. It recently partnered with Norway’s state-owned investment fund, Norfund, and KLP, Norway’s largest pension company, to co-invest in transmission projects. ReNew Energy Global Plc’s subsidiary ReNew Power Pvt. Ltd has also partnered with Elsewedy Electric SAE to set up an $8 billion green hydrogen plant in the Suez Canal Economic Zone.

Torrent Power is not averse to an inorganic route to grow its business. It had placed the highest bid for acquiring the electricity distribution business of Dadra and Nagar Haveli, and Daman and Diu as part of the Union territories (UTs) electricity distribution companies (discoms) privatization exercise. Torrent Power had also bid to acquire the Chandigarh discom, in which Eminent Electricity Distribution Ltd, a subsidiary of Kolkata-based RP-Sanjiv Goenka Group company CESC Ltd, emerged as the highest bidder.