The company, which has an installed capacity of 9.5 GW, is looking to invest both in wind and solar projects going forward that will require investments at the rate of about Rs 5.5 crore per MW
Renew Power is aiming to invest approximately Rs 44,000 crore by the end of the fiscal year 2026 to add up to 9 gigawatts of capacity, according to the company's Chairman and CEO, Sumant Sinha.
With an existing installed capacity of 9.5 GW, Renew Power plans to make investments in both wind and solar projects, which will require funding at an approximate rate of Rs 5.5 crore per MW, as stated by Sinha.
The company has already entered into power purchase agreements (PPAs) for 5.5 GW of projects that are scheduled to be commissioned by the end of fiscal year 2025. An additional 3.5 GW of projects have been awarded, but PPAs are yet to be finalised.
Taking into consideration that it costs around Rs 4 crore per MW for the installation of solar capacity and over Rs 7 crore for wind, with an assumed mix of 40% solar and 60% wind, the average cost per MW of new capacity comes to over Rs 5 crore per MW. Sinha mentioned, "At a rough estimate, we are looking to invest about Rs 44,000 crore."
Regarding the impact of rising yields, Sinha stated that the company prefers domestic borrowing, as domestic banks have surplus liquidity, and is avoiding overseas borrowing. Domestic borrowing rates have risen by 0.50-0.75%, while international rates are much higher. Renew Power is not affected by the Middle East conflict, according to Sinha.
Furthermore, the company is exploring the green hydrogen sector and has established a joint venture with state-owned Indian Oil Corporation and L&T in this regard. Sinha also advocated for incentives such as import duty exemptions for equipment and extending Special Economic Zone benefits to the sector.
He added that collectively, these measures have the potential to reduce the overall cost of green hydrogen production by 20%, to about USD 2.75 per kilogramme from the current USD 3.5.