KOLKATA: In a significant stride towards bolstering its renewable energy footprint, the RP-Sanjiv Goenka Group (RPSG) announced on Monday that Purvah Green Power, the dedicated renewable energy platform of CESC, is set to acquire a substantial 1.4 GWp operating solar portfolio from ReNew Solar Power.

The strategic acquisition is valued at an enterprise value of Rs 4,859 crore, marking a pivotal moment in CESC’s green energy expansion. The portfolio, strategically dispersed across six distinct project special purpose vehicles (SPVs) located in the states of Rajasthan and Karnataka, will be secured for a cash consideration amounting to Rs 1,582 crore. This financial outlay is composed of Rs 590 crore in equity investment and an additional Rs 993 crore allocated for the repayment of existing promoter debt.

Shashwat Goenka, Vice Chairman of RPSG, shed light on the funding mechanisms for this considerable investment. “The acquisition was funded through a combination of internal accrual and some nominal debt,” Goenka stated. He further outlined the group’s ambitious trajectory in the renewable sector, revealing plans to establish a formidable renewable energy capacity of 10 GW over the ensuing couple of years. This monumental undertaking is projected to necessitate an investment of approximately Rs 65,000 crore, underscoring RPSG’s deep commitment to sustainable energy development.

The acquired portfolio is particularly attractive due to its composition of operating projects, each boasting an established and verifiable generation track record. A significant portion, over 90% of the capacity, is underpinned by long-term power purchase agreements (PPAs) with the Solar Energy Corporation of India (SECI). The remaining capacity is secured through similar long-term contracts with distribution companies in Karnataka. Crucially, all these PPAs are structured for an extensive tenure of 25 years, providing long-term revenue visibility and operational stability.

Commenting on the transformative nature of the transaction, Mr. Goenka remarked, “This acquisition marks a significant acceleration of our renewable energy journey. It gives us immediate operating scale, complements our strong pipeline of contracted capacity and meaningfully brings forward the growth of the platform.”

Prior to this landmark transaction, Purvah’s contracted capacity stood at approximately 3.4 GWp. With the successful completion of this acquisition, its total contracted capacity is poised to surge to an impressive 4.8 GWp. This elevated capacity will comprise 1.8 GWp of operational capacity, augmented by 3 GWp of projects that are currently tied up and progressing through various stages of construction.

Beyond its substantial solar generation capacity, Purvah Green Power is also making significant strides in energy storage solutions. The company has 2.2 GWh of battery storage capacity already tied up and under implementation. This strategic move further solidifies Purvah’s robust renewable energy and storage portfolio, positioning it as a key player in India’s evolving clean energy landscape.