Japan's Mitsui Group has agreed to take a 49% stake in ReNew Power's round-the-clock renewable power project.
ReNew signed a 400 megawatt round-the-clock power purchase agrement last year to supply electricity to the Solar Energy Corporation of India. For this, the company will install 1,300 MW of renewable energy capacity and up to 100 MWh of battery storage.
"ReNew Power has finalised a partnership with Mitsui & Co. Ltd., a leading global general trading and investment firm. The partnership will see Mitsui invest in the RTC renewable energy project being developed by ReNew," the company said in a statement.
It did not give the financial details about the deal.
The RTC project will consist of three newly-built wind farms and one solar plus battery storage farm across Rajasthan, Karnataka and Maharashtra, and provide 400 MW of electricity to SECI. Commercial operations of the project are expected to start in the third quarter of 2023.
ReNew, through its affiliates, will also undertake EPC, O&M, and project management for the RTC project.
"The 25-year PPA for the project...was signed last year with SECI for supplying electricity at Rs 2.90 per kWh (or unit), which will increase by 3% annually for 15 years after which it will stabilise for the remaining period of the project," the statement read.
India, being the third-largest emitter of greenhouse gases globally, made commitments at the Glasgow COP26 summit last year to reach 500 GW of non-fossil fuel-based installed capacity by 2030, and to source 50% of all its energy from renewables by then.
The RTC project will feed into this target and support the government's policy of scaling up the renewable energy sector as part of the country's historic clean energy transition.
"The RTC project, the first of its kind in India, provides the lowest cost and emission-free 24x7 renewable electricity," ReNew Power's CEO Sumant Sinha said. "We are proud to partner with Mitsui to support India's green energy transition and look forward to strengthening this partnership in the future."
ReNew develops, builds, owns, and operates utility-scale wind and solar energy projects, and hydropower projects. As of Feb. 1, 2022, it had a total portfolio of 10.2 GW of renewable energy projects across India, including commissioned and committed projects.
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