Torrent Power Limited on Friday announced completion of a Rs 300 crore acquisition of a 50 Mw solar power plant run by the special purpose vehicle held jointly by Lightsource Renewable Energy, British Petroleum and UK Climate Investments LLP (UKCI).
Pursuant to a securities purchase agreement with Lightsource India Limited and Lightsource Renewable Energy (India) Limited, Torrent Power completed a transaction of acquisition of 100 per cent of the share capital and all securities of LREHL Renewables India SPV 1 Private Limited (SPV).
Lightsource Renewable Energy (India) Limited is a 100 per cent subsidiary of LSBP, a Lightsource Renewable Energy and British Petroleum partnership which holds 51 per cent stake in Lightsource India Limited with the remaining 49 per cent held by UK Climate Investments LLP (UKCI).
Commissioned in 2018, the SPV operates the 50 Mw solar power plant in Maharashtra with a long-term power purchase agreement (PPA) with Solar Energy Corporation of India Limited (SECI) for full capacity for a period of 25 years at a tariff of Rs 4.43/ kWh. The enterprise value for the acquisition of Rs 300 crore includes the viability gap funding (VGF) receivable, consequent to closing adjustments, Torrent Power stated on Friday.
The integrated power utility of the diversified Torrent Group with group revenues of Rs 20,500 crore (roughly USD 2.7 billion), Torrent Power has presence across the entire power value chain of generation, transmission and distribution. The company currently has an aggregate installed generation capacity of roughly 4.1 Gw, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0 GW).
Torrent Power also has a capacity of 0.4 Gw of renewable energy plants under development. With the acquisition of a 50 Mw solar power plant, Torrent Power’s total generation capacity, including the under development portfolio, will reach approximately 4.6 GW with a renewable portfolio of more than about 1.5 Gw.
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