CESC Subsidiary Acquires 1.4 GWp Solar Portfolio
By ThePip Desk
Purvah Green Power, a CESC subsidiary, strategically acquires a 1.4 GWp operational solar portfolio for Rs 4859 crore, shifting focus to revenue-generating assets.
CESC’s subsidiary, Purvah Green Power, is set to acquire a substantial 1.4 GWp operating solar portfolio from Renew Solar Power. This strategic acquisition, valued at Rs 4859 crore, signals a decisive shift for Purvah Green Power towards assets already generating contracted cash flows.
The transaction stands as one of the largest acquisitions of operating solar assets in the Indian market, fundamentally altering Purvah Green Power’s portfolio composition. It transitions the platform from one built primarily on projects under development to one anchored by operational, revenue-generating assets.
Key Acquisition Details
- Acquired Capacity: 1.4 GWp operating solar portfolio
- Seller: Renew Solar Power
- Project Vehicles: Six special purpose vehicles
- Locations: Rajasthan and Karnataka
- Enterprise Value: Rs 4859 crore (equivalent to $509 million at Rs 95.5/USD)
- Funding Source: Parent company, CESC
More than 90% of the acquired capacity is contracted with the Solar Energy Corporation of India (SECI) under long-term power purchase agreements. The remaining capacity is contracted with Karnataka distribution companies, with all PPAs extending over a 25-year tenure, ensuring stable, recurring revenue streams.
Strategic Portfolio Expansion
This acquisition significantly bolsters Purvah Green Power’s overall contracted capacity and operational footprint. It accelerates progress towards the group’s immediate ambition of establishing a 10 GW renewable energy platform within the next few years.
- Prior Contracted Capacity: Approximately 3.4 GWp
- Post-Acquisition Total Contracted Capacity: 4.8 GWp
- Operational Post-Acquisition: 1.8 GWp
- Under Construction (Tied-up): 3 GWp
- Battery Capacity (Tied-up & Under Implementation): 2.2 Gwh
The move substantially increases the proportion of the portfolio that is already generating revenue, strengthening recurring cash flows well ahead of the commissioning schedule for the under-construction pipeline. CESC, which primarily engages in power generation and distribution in West Bengal, strategically enhances its renewable energy presence through this subsidiary.