Torrent Power on Saturday entered into a Share Purchase Agreement (SPA) with SkyPower Southeast Asia III Investments and SkyPower Southeast Asia Holdings 2 (the Sellers) for the acquisition of 100% securities of Sunshakti Solar Power Projects (the SPV).
The enterprise value for the acquisition is ₹417 crore subject to the closing price adjustments if any.
Currently, the SPV operates a 50 MW Solar Power Project in the state of Telangana.
Torrent Power enters into a long-term power purchase agreement for the solar power project with Northern Power Distribution Company of Telangana Limited (NPDCTL) for 25 years at a fixed tariff of approximately 5.35 per kWh, with remaining useful life of about 20 years.
Torrent Group-backed integrated power utility, Torrent Power is one of the largest companies in the Country’s power sector with a presence across the entire power value chain of generation, transmission, and distribution.
By adding a 50 MW Solar Power Plant, Torrent Power’s total generation capacity, including its underdevelopment portfolio, will reach ~4.6 GW with a renewable portfolio of more than 1.5 GW.
At present, Torrent Power has an aggregate installed generation capacity of ~4.1 GW, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0. GW). It also has a capacity of 0.4 GW of renewable energy plants under development.