ReNew Energy Global plc (NASDAQ: RNW) has confirmed that it has joined hands with Mitsui & Co., Ltd which has earned a reputation as a prominent global general trading and investment firm. As per the partnership, Mitsui will make an investment in the RTC renewable energy project being developed by ReNew.
India, the world's third-largest emitter of greenhouse emissions, pledged at the COP26 meeting in Glasgow last year to develop 500 GW of non-fossil fuel-based installed capacity by 2030 and to get 50% of its electricity from renewables by then. The RTC project will contribute to this goal, as well as the Indian government's strategy of expanding the renewable energy sector as part of the country's momentous clean energy transition.
The RTC project will include three newly constructed wind farms and one solar plus battery storage farm having 1,300 MW total plus up to 100 MWh battery storage spread across Rajasthan, Karnataka, and Maharashtra, and will provide 400 MW of electricity to SECI, an Indian central government-owned entity with an AA+ domestic debt rating from ICRA, a subsidiary of Standard & Poor's.
The project's 25-year PPA, India's first-of-its-kind renewable energy PPA, was inked last year with SECI for supplying power at 2.90/kWh (US 3.8), which will climb by 3% yearly for the first 15 years before stabilizing for the remainder of the project. Mitsui and ReNew will work together to advance India's clean energy transition through this project.
Furthermore, Mitsui will contribute to the project's success by using its substantial global experience in power project development, as well as its broad business network across industries. Beyond this RTC project in India, Mitsui looks forward to growing its relationship with ReNew. Commercial operations for the plant are planned to begin in the third calendar quarter of 2023. ReNew will also handle EPC, O&M, and project management for the RTC project through its affiliates.