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Renew Power US$1bn Green Loan: “round-the-clock” hybrid power project financing

Renew Power has successfully closed a US$985m-equivalent Green Loan to finance round-the-clock renewable energy projects in the States of Rajasthan, Maharashtra and Karnataka, India. The transaction highlights Renew Power’s role in supporting India’s energy transition and reinforces the company’s position as a major renewable energy player in the country. Natixis was mandated Green Loan coordinator for this transaction.


Transaction highlights

The Green Loan, considered as the largest external commercial borrowing facility for a single renewables project in India, will finance a 400 MW capacity greenfield project, consisting in the construction and operation of wind and solar farms backed-up by battery energy storage systems. The RTC system allows the project to overcome the intermittencies associated with solar and wind projects by suppling power day and night and to compete against the baseload of fossil-fuel energy providers, such as coal. The project leaded ReNew Power to sign a 25-year Power Purchase Agreement (“PPA”) with the Solar Energy Corporation of India Limited (“SECI”), a government entity established to facilitate the development of the renewable energy sector in the country.

Emergent Ventures India, an Indian sustainability consulting firm acting as Second Party Opinion provider, has confirmed the alignment of the loan with the LMA, LPLMA and LSTA’s Green Loan Principles.

The transaction was awarded “Asia Pacific Green Deal of the year – 2022” by PFI, in recognition of the potential of RTC projects in supporting the development of renewable energies in India and internationally.

About Renew Power

ReNew Power India Private Ltd (ReNew Power), established in 2011 and a subsidiary of ReNew Energy Global PLC, is one of India’s leading renewable energy companies and independent power producers (IPPs) having a diverse portfolio of solar and wind projects across various states in India. ReNew Power develops, builds, owns, and operates utility-scale wind energy projects, utility-scale solar energy projects, utility-scale firm power projects and distributed solar energy projects. One of the key strengths of ReNew Power lies in its vertical integration as a contracted and independent power producer with diverse execution capabilities.