ReNew Energy secures billion-dollar loan for »round-the-clock« 1.3-gigawatt power plant

Indian renewable energy company ReNew Energy Global plc has secured what it says is the largest-ever financing for a single renewable energy project in India with a consortium of 12 international lenders led by Dutch cooperative bank Rabobank. According to the deal, the consortium is providing USD 1 billion for a »round-the-clock« (RCT) power plant which ReNew plans to build from three wind farms and a solar power plant with a total capacity of 1.3 gigawatts in combination with battery storage of up to 100 megawatt-hours. The resulting interest rate after hedging the loans is expected to be lower than the company’s current average cost of debt, according to ReNew.
The facilities for the RCT power plant are being built in the states of Rajasthan, Karnataka and Maharashtra, with commissioning scheduled for the third quarter of 2023. In April this year, Japanese industry group Mitsui & Co. Ltd. took a 49 percent stake in the project. ReNew entered into a 25-year power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) in 2021 for 400 megawatts of continuously available capacity. The agreement, which ReNew says is the first renewable energy PPA in India, provides for an initial supply price of 2.90 rupees (3.65 ¢) per kilowatt-hour. The tariff is to increase by 3% annually for 15 years and to stabilize for the remainder of the term. ReNew will handle the entire project through subsidiaries, including EPC as well as operations management.

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