Independent renewable power producer ReNew Energy has entered into a definitive agreement to sell its subsidiary, ReNew Sun Waves, which operates a 300 MW solar project in Jaisalmer, Rajasthan, to Anzen India Energy Yield Plus Trust.

Under the agreement, ReNew will divest its 100% shareholding and economic interest in ReNew Sun Waves. The deal assigns an enterprise value of approximately $176 million to ReNew Sun Waves. This value is subject to adjustments for net current assets and other stipulations outlined in the definitive documents.

In addition to the base transaction value, ReNew anticipates earning approximately $17 million as an earn-out. This amount is linked to proceeds from a change in law that includes increases in basic customs duty, safeguard duty, and goods and services tax, once ReNew Sun Waves realizes the initial payment.

The 300 MW solar project, operational for around three years, is backed by a 25-year power purchase agreement with the Solar Energy Corporation of India at a tariff of ₹2.55 (~$0.030)/kWh.

The transaction is expected to conclude following the fulfillment of contractual obligations, including conditions precedent, such as lender approvals.

Anzen India Trust, managed by Edelweiss Real Assets Managers, has acquired a 100% stake in two power transmission projects with a total network of ~855 ckm and two substations with 1,400 MVA transformation capacity. It has the right of first offer to acquire 74% shareholding in 12 solar projects aggregating ~813 MW.

In June this year, ReNew Power said it would acquire 471.65 MW of wind and 56.25 MW of solar assets spread across eight states. The projects were estimated to have a total enterprise value of ₹30 billion ($369 million).

ReNew Power‘s net loss narrowed to ₹4 billion ($49 million) in the third quarter of the financial year 2023, compared to a net loss of ₹6.4 billion ($77 million) year-over-year. The company said its quarterly loss was significantly lower due to increased operating capacity, receipt of late payment surcharge from customers, and an insurance claim partially offset by lower wind resources.