India-based renewable energy project developer ReNew has commissioned its first interstate transmission system (ISTS) project, the Koppal Transmission Program, which aims to facilitate the transmission of 1.5 GW of renewable energy in Karnataka.

Awarded in the financial year 2022, the program encompasses the construction of a new 400/220 kV substation at Koppal, a 276 Ckt Km 400 kV D/C quad moose transmission line, and an extension of the 400 kV GIS Bays at the Powergrid Narendra (New) Substation.

Following the commissioning of the 1,500 MW Koppal Transmission program, the remaining transmission for 3,500 MW is anticipated to be completed by June 2024.

In response to this development, an agreement was recently signed on the second joint investment in the transmission sector with private equity company Norfund and Norway’s largest pension fund, KLP.

The investment made by Norfund and KLP in ReNew’s transmission projects aligns with ReNew’s farm-down strategy, allowing for the addition of further capacity. This collaboration is expected to yield synergies in project execution and operations, leveraging ReNew’s in-house capabilities and playing a crucial role in enabling the earlier commissioning of renewable energy projects.

These factors are anticipated to enhance returns and reduce completion timelines, mitigating risks for the company’s core renewable energy development business.

To date, ReNew has secured three transmission projects in Karnataka under ISTS, contributing to the transmission of 5 GW of wind and solar power potential identified in Phase-I for 35 years.

The Central Transmission Utility, a government-owned entity and a wholly-owned subsidiary of PGCIL, will oversee the billing, collection, and disbursement of revenue for these transmission projects.

The recent agreement between these companies to invest in the Gadag Project for a 49% stake represents the second investment in the partnership, with aspirations for additional joint ventures. The expected levelized EBITDA for the Gadag Project is approximately $6.2 million, encompassing the development of substations, transmission lines, and augmentation facilities.

Commercial operations for the Gadag Project are anticipated to commence in two phases – in the last quarter of FY24 and the first quarter of FY25, contributing significantly to India’s sustainable energy objectives.

Kailash Vaswani, Group CFO of ReNew, highlighted the strategic significance of investments in the transmission sector. He emphasized how such investments synergize with ReNew’s core renewable energy portfolio by bolstering the certainty of connecting large renewable energy development projects.

Vaswani also underscored the success of capital recycling, wherein ReNew has raised over $500 million in equity over the past two years by divesting stakes in assets.

Through the partnership with ReNew, Norfund aims to contribute to India’s climate goals by connecting an additional 2.5 GW of planned renewable power to the national grid.

The Ministry of Power approved a plea from ReNew Dinkar Urja, a special-purpose vehicle of ReNew Power, to set up overhead transmission lines for its 200 MW solar power project in Bikaner, Rajasthan.

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).

The company announced $1.1 billion in external commercial borrowing for the company’s hybrid round-the-clock battery-enabled renewable project.