ReNew secures $1 billion loan for 1.3 GW hybrid wind-solar project in India

From pv magazine India

ReNew Power has secured a $1 billion loan for a renewables project in India. The financing came from 12 international lenders, led by Rabobank. 

“As ReNew rapidly builds its total portfolio, this $1 billion loan has been tied up through a special purpose vehicle and will be deployed for its hybrid round-the-clock (RTC) battery-enabled project,” ReNew said. “The interest rate, after hedging, is expected to be lower than the company’s current average cost of debt on its balance sheet.”

ReNew Power is developing the 1.3 GW hybrid wind-solar energy project, which will be supplemented with up to 100 MWh of battery storage. The project will supply 400 MW of round-the-clock power to Solar Energy Corp. of India (SECI). It will involve the development of wind and solar farms across the Indian states of Karnataka, Rajasthan, and Maharashtra. 

“This loan – the single-largest project finance in India’s renewable sector – highlights the interest of global lenders in ReNew as it helps spearhead India’s historic clean energy shift and shows its continued ability to access financing at much lower rates than several years ago, despite the current volatility in the currency markets and a rising interest rate environment,” said Sumant Sinha, chairman and CEO of ReNew. 

Japan’s Mitsui owns a 49% stake in the ReNew Power project. Under the 25-year power purchase agreement, the project will supply electricity in the first year at a tariff of INR 2.90/kWh ($0.036). The tariff will increase by 3% per year over the first 15 years of the 25-year power supply deal, before becoming a fixed payment for the remaining period of the project.