Renew Power to Funnel Rs.44,000 Cr to Increase Energy Capacity

According to Sumant Sinha, the Chairman and CEO of Renew Power, the company is aiming to invest approximately Rs 44,000 crore by the completion of FY26. This investment will contribute to an additional capacity of 9 gigawatts. According to him, the company, with a capacity of 9.5 GW, intends to invest in wind and solar projects in the future. These investments will require approximately Rs 5.5 crore per MW.

In the words of Sinha, the company has successfully secured power purchase agreements for 5.5 GW of projects that are scheduled to be commissioned by the end of FY25. Additionally, they have been awarded bids for another 3.5 GW of projects, although the signing of power purchase agreements is still pending.

The cost to install solar capacity is approximately Rs 4 crore per MW, while wind capacity costs over Rs 7 crore per MW. Assuming a distribution of 40% solar and 60% wind, the average cost of new capacity is over Rs 5 crore per MW.

Sinha mentioned that we are aiming to invest approximately Rs 44,000 crore at a ballpark level. He conveyed this comment during the unveiling of the second edition of his book 'Fossil Free'.

When asked about the impact of hardening yields, he said the company prefers to borrow domestically, where the bank is flush with liquidity and is avoiding any overseas borrowing. The rate has increased by 0.50-0.75 percent for domestic borrowings, while the same is much higher internationally, he said.

Meanwhile, he said the company is also looking at the Green Hydrogen space for which it already has a joint venture with state-owned Indian Oil Corporation and L&T.