Torrent Power is in talks to buy 1.1 gigatonnes (GW) of clean power projects from ReNew Energy Global Plc for around $1.2 billion, according to the sources.

Ahmedabad-based Torrent Power has submitted a non-binding offer (NBO) for ReNew’s solar and wind power assets of 350 megawatts (MW) and 750MW, respectively, at an equity value of around $450 million, with valuation discussions ongoing.

While a ReNew Energy Global Plc spokesperson declined to comment, queries mailed to Torrent Power spokesperson on Thursday night remained unanswered till press time.

According to media reports, ReNew intends to sell this operational clean energy capacity on November 15 as part of the company’s capital recycling strategy and reinvest the proceeds in the development of new clean energy assets.
Torrent Power has a total capacity of 4.16 GW, with renewables accounting for 1.068 GW. In addition, the Torrent Group is developing 715 MW of renewable energy capacity. Torrent Power previously agreed to purchase a 50 MW solar power plant in Maharashtra from Lightsource Renewable Energy. Dadra and Nagar Haveli, Daman and Diu, Ahmedabad, Gandhinagar, Surat, the Dahej special economic zone, the Dholera special investment region, Bhiwandi, Shil, Mumbra, Kalwa, and Agra are also served by Torrent Power.

ReNew Power, founded in 2011 by Sumant Sinha, was one of the first entrants into India’s green economy. The company now has a portfolio of 13.4GW with a commissioned capacity of 7.7GW. It recently collaborated on transmission projects with Norfund, Norway’s state-owned investment fund, and KLP, Norway’s largest pension company. ReNew Power, a subsidiary of ReNew Energy Global Plc, has also partnered with Elsewedy Electric SAE to build a $8 billion green hydrogen plant in the Suez Canal Economic Zone.

Torrent Power is open to taking an inorganic approach to expanding its business. It had made the highest bid for the electricity distribution businesses of Dadra and Nagar Haveli and Daman and Diu as part of the privatisation of Union territories (UTs) electricity distribution companies (discoms). Torrent Power had also bid to buy the Chandigarh discom, but Eminent Electricity Distribution, a subsidiary of the Kolkata-based RP-Sanjiv Goenka Group company CESC, came out on top.

ReNew Power merged with Nasdaq-listed special purpose acquisition company RMG Acquisition Corp. II (RMG II) in August 2021 to form ReNew Energy Global Plc. As part of its expansion strategy, ReNew has formed an equal joint venture with AES and Siemens-backed Fluence for the energy storage business in India. It has also formed a tripartite joint venture for green hydrogen in India with the state-run Indian Oil Corporation and Larsen and Toubro.

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