• The Norwegian Climate Investment Fund, managed by Norfund, and KLP, Norway’s largest pension company, sign agreement to invest approx. $9m (INR 730m) for 49% stake in the second project in Gadag district in Karnataka, India
• ReNew commissions its first Interstate Transmission Project, the “Koppal Transmission Scheme” to help in transmission of 1.5GW of renewable energy in the Koppal Area of Karnataka
• ReNew has won 3 transmission projects in Karnataka, India to date, as part of their commitment to build transmission for ~5 GW of wind power, under ISTS¹
• Central Transmission Utility (CTU), a Govt. of India owned entity and a wholly owned subsidiary of Power Grid Corporation of India Ltd (PGCIL), will be responsible for billing, collection & disbursement of revenues for these projects.

GURUGRAM, India / Nov 16, 2023 / Business Wire / ReNew (“ReNew”, RNW, RNWWW: NASDAQ), India’s leading decarbonization solutions company, has commissioned its first interstate transmission project, the “Koppal Transmission Scheme”. The project was executed in a compressed time schedule and will help in transmission of 1,500 MW of renewable energy in the Koppal Area of Karnataka. The Koppal Transmission Scheme was awarded in FY 22 and covers construction of a new 400/220 kV Sub-station at Koppal along with 276 Ckt Km of 400 kV D/C quad moose transmission line with extension of the 400 kV GIS Bays at the PGCIL Narendra (New) Substation. Following the commissioning of the 1,500 MW Koppal Transmission Scheme, the remaining transmission for 3,500 MW is expected to be completed by June 2024.

Following the announcement, an agreement was signed yesterday on the second joint investment in the transmission sector with Norfund, the Norwegian Government’s Investment Fund for developing countries, and KLP, Norway’s largest pension company, through their joint company KNI India AS. Norfund’s share is from Norway’s newly established Climate Investment Fund, managed by Norfund. This marks Norfund’s and the Climate Investment Fund’s ongoing support in the transmission sector, helping to accelerate the transition to renewable energy.

The investment by Norfund and KLP in ReNew’s transmission projects is in line with ReNew’s farm-down strategy, enabling ReNew to add further capacity. In addition, synergies in project execution and operations with ReNew’s inhouse capabilities and the role of these projects in enabling earlier commissioning of renewable energy projects, will enhance returns and derisk completion timelines for ReNew’s core RE development business.

ReNew has won 3 transmission projects in Karnataka to date under ISTS. ReNew’s transmission projects are part of the ISTS for transmission of 5 GW of wind and solar power potential identified in Karnataka under Phase-I for implementation and interconnection with ISTS grid, for a period of 35 years. Central Transmission Utility (CTU), a Govt. of India owned entity and a wholly owned subsidiary of PGCIL (which has AAA/ Stable (highest safety) credit rating by ICRA, a subsidiary of Standard & Poor’s), will be responsible for billing, collection & disbursement of the revenue for these transmission projects.

India made commitments at the Glasgow COP26 summit to reach 500 GW of non-fossil fuel-based installed capacity by 2030, and to source 50% of all its energy from renewables by then.

The agreement to invest in the Gadag Project for a 49% stake is the second investment in the partnership, with an ambition for further joint investments. The expected levelized EBITDA for the project is ~$ 6.2m. The project consists of (a) 2 x 500 MVA 400/220 kV sub-station at Gadag with 400 kV D/C transmission line from Gadag substation to Narendra New substation and 400 kV GIS Extn at Narendra New in Karnataka and (b) 3 x 500 MVA 400/220 kV Augmentation at Gadag Substation with 400 kV D/C transmission line from Gadag substation to Koppal substation and 400 kV AIS bays Extn at Koppal & Gadag end. Its commercial operations are expected to start in two phases – in the last quarter of FY24 and first quarter of FY25.

Speaking about this partnership with Norfund and KLP, Mr. Kailash Vaswani, Group CFO of ReNew Private Limited said, “Investments in the transmission sector provide synergies with our core RE portfolio by enhancing certainty of connecting ReNew’s large RE development projects and demonstrates our success in capital recycling through which we have raised over half a billion of US dollars in equity over the past 2 years by selling stakes in assets. We are proud to partner with Norfund and KLP to support India’s green energy transition and look forward to strengthening this partnership in the future.”

Anne Beathe Tvinnereim, Norway’s Minister of International Development, said, “To secure the necessary investments for the vital energy transition, public funding must mobilise private capital. The signing between the Climate Investment Fund, ReNew and KLP is a great example of this. ​It also shows how Norwegian investments are helping India reach its goals of installing 500 GW of non-fossil capacity by 2030.”

Bjørnar Baugerud, head of the Climate Investment Fund at Norfund, said, “Strengthening the transmission infrastructure is critical to facilitate the dispatch of the necessary new renewable energy capacity to reach the climate goals in line with the plans of the Government of India. Through this second investment and our partnership with ReNew, we are pleased to be able to contribute to the connection of another 2.5 GW of planned renewable power to the national grid.”

About ReNew

ReNew is India’s leading decarbonisation solutions company listed on Nasdaq (Nasdaq: RNW, RNWWW). ReNew's clean energy portfolio of approximately 13.7GW on a gross basis as of June 30, 2023, is one of the largest globally. In addition to being a major independent power producer in India, ReNew provides end-to-end solutions in a just and inclusive manner in the areas of clean energy, value-added energy offerings through digitalisation, storage, and carbon markets that increasingly are integral to addressing climate change. For more information, visit renew.com and follow us on LinkedIn, Facebook, Twitter and Instagram.

About Norfund:

Norfund is the Norwegian Investment Fund for developing countries. Our mission is to create jobs and to improve lives by investing in businesses that drive sustainable development. Norfund is owned and funded by the Norwegian Government and is the Government’s most important tool for strengthening the private sector in developing countries, and for reducing poverty. Norfund’s committed portfolio totals 3.1 billion USD in Sub-Saharan Africa, South-East Asia, and Central America. From 2022, Norfund also manages the Norwegian Climate Investment Fund that aims to contribute to reducing or avoiding greenhouse gas emissions by investing in renewable energy in developing countries with large emissions from coal and other fossil fuel production. For more information, please visit: www.norfund.no

About KLP

KLP, the pension fund for Norway’s municipal employees, is the country’s biggest occupational pension fund with N0K900bn (€88bn) under management. KLP is a mutual company, owned by Norwegian municipalities, health trusts and publicly owned companies. KLP has strict self-imposed guidelines for responsible investments, climate, and sustainability, and has released one of the industry most ambitious net zero emissions roadmaps. Learn more at https://www.klp.no/en

^[1] Inter-state transmission scheme, Ministry of Power’s framework under which transmission projects are bid out.