Torrent Power is in talks with ReNew Energy Global to buy clean energy plants totalling 1.1 gigawatts (GW), according to a Mint report. The deal is estimated to be worth around $1.2 billion.
The Ahmedabad-based Torrent has reportedly submitted a non-binding offer (NBO) for ReNew's solar and wind assets of 350 and 450 MW for $450 million.
In November, it was reported that ReNew is planning to sell these operational green energy plants as per the company’s capital recycling strategy. The proceeds are to be reinvested in building new green energy assets.
The valuation has not been decided and talks are ongoing regarding the same.
A person aware of the matter told Mint, “No sell-side bank has been appointed for this transaction by ReNew. The talks over valuation are underway between Torrent and ReNew.”
Out of Torrent Power’s total generation capacity of 4.16GW, renewables account for 1.068GW. The company is also developing 715MW of renewable energy capacity.
Earlier, the company had signed signed a pact with Lightsource Renewable Energy to buy a 50MW solar power generation plant in Maharashtra.
Currently, Torrent Power distributes electricity to 3.94 million customers in Ahmedabad, Gandhinagar, Surat, Dahej special economic zone, Dholera special investment region, Dadra and Nagar Haveli, Daman and Diu, Bhiwandi, Shil, Mumbra, Kalwa and Agra.
ReNew Power, a relatively new player in India’s green energy space, was founded in 2011 and has a capacity of 13.64 GW. The company signed a pact with Microsoft India in December to supply 150 MW of green energy.
