India’s CESC unit to buy solar portfolio from ReNew for $510M

India’s RP-Sanjiv Goenka Group (RPSG) has announced that the group’s subsidiary Purvah Green Power Private Limited, the renewable energy platform of CESC Limited, is set to acquire a 1.4 GWp operating solar portfolio from ReNew Solar Power Private Limited, held across six project special purpose vehicles in Rajasthan and Karnataka, at an enterprise value of USD 509 million. The acquisition has been funded by the parent company.

CESC is the flagship power utility of ​the RP-Sanjiv Goenka Group and ​serves ⁠about 4.4 million consumers through its power distribution businesses.

The transaction marks a shift in the composition of Purvah’s portfolio — from a platform built primarily on projects under development to one anchored by assets already generating contracted cash flows, CESC said.

The acquired assets are operating projects with an established generation track record. More than 90% of the capacity is contracted with the Solar Energy Corporation of India (SECI) under long-term power purchase agreements, with the balance contracted with Karnataka distribution companies. All PPAs are over a 25-year tenure.

“This acquisition marks a significant acceleration of our renewable energy journey. It gives us immediate operating scale, complements our strong pipeline of contracted capacity, and meaningfully brings forward the growth of the platform,” Shashwat Goenka, Vice chairman, RPSG, said. “We have always believed our renewable growth should combine disciplined greenfield development with selective acquisitions where they accelerate value creation, and the quality and long-term visibility of these assets made this a compelling opportunity.”  

Purvah’s contracted capacity stood at approximately 3.4 GWp prior to the transaction. Following completion, total contracted capacity rises to 4.8GWp, of which 1.8 GWp is operational and 3 GWp is tied-up, at various stages of construction. Additionally, 2.2 Gwh battery capacity is also tied-up and under implementation. The acquisition substantially increases the proportion of the portfolio that is already generating revenue and strengthening recurring cash flows well ahead of the commissioning schedule for the under-construction pipeline, CESC said.