Purvah Green Power Private Limited, the renewable energy platform of CESC Limited, has agreed to acquire a 1.4 GWp operating solar portfolio from ReNew Solar Power Private Limited for an enterprise value of Rs 48.59 billion. The portfolio comprises six project-specific special purpose vehicles (SPVs) with assets in Rajasthan and Karnataka. The acquisition will be funded by CESC.
Purvah Green has signed a share purchase agreement to acquire 100 per cent equity in the six SPVs. More than 90 per cent of the portfolio capacity is contracted with the Solar Energy Corporation of India Limited under long-term power purchase agreements (PPAs), while the remaining capacity is contracted with Karnataka discoms. The PPAs have a tenure of 25 years. Following the acquisition, Purvah Green’s total contracted capacity will increase to 4.8 GWp, including 1.8 GWp operational capacity and 3 GWp under various stages of construction. The company also has 2.2 GWh of battery energy storage capacity tied up and under implementation.