Renew Blocks Transmission Capacity for 3.1 GW Renewable Projects in Advance
The company has spent about 10% of its CAPEX to develop its solar manufacturing
Independent renewable power producer ReNew has blocked transmission capacity in advance for its 3.1 GW of awarded projects, which are pending power purchase agreements (PPA).
At a recent investors’ conference call, ReNew Chairman Sumant Sinha emphasized the critical nature of blocking transmission capacity as a proactive approach. The letters of award for these projects have given the company a strategic advantage in securing transmission capacity.
The company expects to receive the PPAs over the next three to six months.
Renew Power said that the PPA for the 200 MW solar project under Solar Energy Corporation of India’s (SECI) Tranche – VIII has been signed.
Sinha acknowledged that complex auctions have longer timelines as developers must take care of commercial implications and secure regulatory approval for tariffs before signing the PPA.
The PPA with SECI marks the completion of fully signed PPAs for all current projects, totaling 13.7 GW for ReNew.
Responding to concerns about the impact of import duties on solar modules, Sinha said India’s 40% import duty provides ample protection to domestic manufacturers. He explained that the cost difference between Indian and Chinese modules is estimated to be around 10% to 15%. The Approved List of Module Manufacturers further restricts imports.
He, however, felt there could be a module supply deficit in the coming year.
ReNew has spent about 10% of its capital on developing its solar manufacturing capability.
It also plans to invest less than 5% of the company’s equity to build a transmission engineering procurement and construction business.
ReNew recorded net revenue of ₹28.6 billion (~$345 million) for the second quarter of the financial year 2023-24, a year-over-year increase of 27.8% compared to ₹22.4 billion (~$270 million).
In July, ReNew signed a 50:50 joint venture agreement with clean energy solutions provider Gentari to develop solar, wind, and energy storage assets to achieve a clean power capacity target of 5 GW in India.