Mitsui, a Japanese conglomerate, has agreed to take a 49% stake in ReNew Power's round-the-clock renewable energy project, the Indian firm announced on Wednesday. The company will install 1,300 MW of renewable energy capacity and up to 100 MWh of battery storage for the 400 MW PPA (Power Purchase Agreement).
"ReNew Power has finalized a partnership with Mitsui & Co Ltd, a leading global general trading and investment firm," the company said in a statement. "The partnership will see Mitsui invest in the RTC renewable energy project being developed by ReNew."
It did not provide financial information about the transaction. The RTC project will consist of three newly constructed wind farms and one solar plus battery storage farm (1,300 MW total plus up to 100 MWh battery storage) spread across the Indian states of Rajasthan, Karnataka, and Maharashtra, and will supply 400 MW of electricity to SECI, an Indian central government-owned entity.
Commercial operations for the project are expected to begin in the third calendar quarter of 2023. ReNew will also handle EPC, O&M, and project management for the RTC project through its affiliates.
"The 25-year PPA for the project, the first-of-its-kind renewable energy PPA in India, was signed last year with SECI for supplying electricity at Rs 2.90 per kWh (or unit), which will increase by 3% annually for the first 15 years, after which it will stabilize for the remainder of the project," according to the statement.
India, the world's third-largest emitter of greenhouse gases, committed last year at the COP26 summit in Glasgow to reach 500 GW of non-fossil fuel-based installed capacity by 2030, and to source 50% of all its energy from renewables by then.
The RTC project will contribute to this goal by supporting the government's policy of expanding the renewable energy sector as part of the country's historic clean energy transition.
"The RTC project, India's first of its kind, provides low-cost, emission-free renewable energy 24 hours a day, seven days a week. We are pleased to be working with Mitsui, a leading global conglomerate, to support India's green energy transition, and we look forward to expanding our collaboration in the future" ReNew Power's founder, chairman, and CEO, Sumant Sinha, stated.
"Our mission is to build brighter futures for people all over the world through infrastructure development," said Ryoichiro Uno, Mitsui's General Manager in charge of infrastructure projects in India, the Middle East, and Africa.
"We see India as a very promising market for a variety of reasons, including its rapid economic growth and a strong commitment to decarbonization. Mitsui, in collaboration with ReNew, will accelerate India's clean energy transition and contribute to the project's success by leveraging our extensive global experience in power project development, as well as our broad business network across industries, through this project," Ryoichiro Uno stated this.
ReNew develops, constructs, owns and operates utility-scale wind and solar energy projects, as well as hydroelectric projects. It had a total portfolio of 10.2 GW of renewable energy projects across India as of February 1, 2022, including commissioned and committed projects.
