India-based independent power producer ReNew Power has signed five power purchase agreements (PPA) amounting to about 2 GW, with Solar Energy Corporation of India (SECI), the Punjab State Power Corporation Limited (PSPCL), and corporate buyers.

SECI

ReNew has signed four PPAs with SECI for 1,375 MW of solar projects.

The developer has signed two PPAs with SECI at a tariff of ₹2.18 (~$2.9)/kWh for 600 MW and 375 MW of solar projects to be developed in Rajasthan. The developer had won 600 MW in SECI’s auction (Tranche IV) held in December 2021, and 375 MW was won by ACME Solar. ReNew recently acquired a beneficial interest in the 375 MW solar project from ACME Solar (SECI IV), subject to the terms of the PPA.

Two more PPAs were signed with SECI for 300 MW and 100 MW capacity. ReNew has acquired a beneficial interest in the 300 MW solar project from ib vogt (SECI IX), subject to PPA terms. The projects were part of the SECI (Tranche IX) auction for interstate transmission-connected solar projects held in June 2020. ReNew had won 400 MW in the auction of which PPA for 100 MW has been signed.

The projects under the PPAs would be in Rajasthan for 25 years. The projects have been issued an AA+ domestic debt rating by the Investment Information Credit Rating Agency (ICRA).

Punjab State Power Corporation

ReNeW has signed PPA with Punjab State Corporation at a tariff of ₹2.33 (~$3.0)/kWh for a 100 MW project. Punjab State Corporation issued the tender for 250 MW of solar in May 2021. ReNew had won 100 MW in the auction. The state regulatory commission also approved the tariffs for these projects recently.

Corporate sales

Corporate buyers have signed agreements with ReNew to trade renewable energy credits or purchase clean energy, for 491 MW, with energy tariffs in the ₹3.06-₹3.95 (~$4.0-~$5.2)/kWh range. The corporates include large US-based global tech majors, Grasim Industries (Aditya Birla Group), and Netmagic (a subsidiary of NTT Communications, Japan). ReNew’s overall corporate portfolio is now over 900 MW, making it one of the largest renewable energy solutions providers for corporates. The assets would be set up in Rajasthan, Maharashtra, and Gujarat.

With the signing of these PPAs, ReNew Power’s gross portfolio has increased to ~12.1 GW from 10.2 GW at the start of the calendar year.

Solar modules

The solar modules for these projects will likely be manufactured at the 2 GW module facility which ReNew is constructing. The additional module requirements will be sourced through tolling contracts with the domestic suppliers in India.

Earlier this month, global investment firm Mitsui & Co acquired a 49% stake in ReNew Power’s 400 MW round-the-clock (RTC) utility-scale renewable energy project.

ReNew Power also allotted a contract to General Electric’s solutions business to build a 400kV/220 kV air-insulated substation in Karnataka. The contract included the supply of two 125 mega-volt ampere reactive (MVAR) 400 kV reactors for each substation.