Introduction to India’s Largest Renewable Energy Company September 2020
Disclaimer This document contains confidential information. You may not disseminate, disclose, trade based upon or otherwise use the information in this document for any purpose. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. The distribution of this document in certain jurisdictions may be restricted by law. Accordingly, any persons in possession of the aforesaid should inform themselves about and observe any such restrictions.. None of ReNew Power or any of its representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of this document, and you should conduct your own independent analysis of the information contained or referred to herein and must make such independent investigation as you may consider necessary or appropriate for such purpose. Nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past, present or future. This document is a summary only and it is not the intention to provide, and you may not rely on this document as providing, a complete or comprehensive analysis of the financial position or prospects of ReNew Power. The information contained in this document is not to be taken as any recommendation made by ReNew Power or any other person to enter into any agreement with regard to any investment. Further, the information contained in this document is only current as of dates mentioned herein and have not been independently verified. Any information contained or opinions expressed in this document are subject to change without notice. None of ReNew Power or any of its representatives will update you in the event the information in this document becomes stale. This document should not be construed as legal, tax, investment or other advice. This document does not constitute an offer or invitation for the sale or purchase of the securities or of any of the assets, business or undertaking described herein. This document should not be considered as a recommendation that any investor should subscribe for or purchase any securities of ReNew Power, its subsidiaries, joint ventures and associate entities in which it or its shareholders have significant influence and should not be used as a basis for any investment decision. 2
ReNew: India’s Largest Renewable Energy Company Large Scale Large Contracted Capacity (2) Balanced Fuel Mix #1 5.4GW Operational, Contracted, Operating Capacity Renewable Energy Solar, Wind, Company in India (1) 5.4GW, 4.8GW, US$710MM 5.0GW, 5.2GW, 53% 47% 49% 51% Revenue FY2020 Disciplined Growth Profitability Diverse Pool of Funding ~2.7x ~13% US$615MM 86.7% US$1.4Bn Demonstrated track record of Capacity Growth Market Share in EBITDA FY2020 Adjusted EBITDA Equity Funding (FY2017-20) Awarded Auctions Margin FY2020 US$4.4Bn (3) USD Green Bonds, (FY2018-FY21YTD) domestic project Debt Financing financing and funding US$0.6Bn (3) from Overseas Credit Cash Institutions Backed by Management Marquee Shareholders Notes: Fiscal Year Ending is 31 March. Exchange rate (US$/INR): 75 1. Based on operational capacity 2. LOA is awaited for GUVNL IX (200MW). Contracted Capacity of 4,733 GW rounded off too 4.8GW and Operational Capacity of 5,431GW 3. As of 31 March 2020 (Fiscal Year 2020) 3
~13% Cumulative Market Share of Capacity Won Since FY18 Awarded Capacity by Center and States Since FY18 (2,3) ReNew Bid Wins Since FY18 (2) Capacity in MW Capacity in MW 13% 9% 10% 26% 20,885 840 1,930 1,900 6,295 865 1,371 11,230 (2) 1,300 1,150 10,210 2,500 300 761 4,200 7,425 1,890 13,750 50 1,525 1,065 800 6,840 6,010 5,900 610 600 FY18 FY19 FY20 FY21 YTD FY18 FY19 FY20 FY21 YTD Solar Wind Hybrid Solar Wind Hybrid Market Share (1) Source: Company Information Notes: 1. Market share defined as capacity won by ReNew in auctions divided by the total capacity auctioned. Note that ReNew does not bid for all capacity auctioned 2. For Hybrid bid in FY21, includes 1,300 MW capacity to be installed for RTC capacity of 400MW 4 3. Excludes manufacturing bid of 12GW
ReNew’s Scale has Tangible Benefits 1 2 3 4 5 6 Access to data – Ability to negotiate Technical expertise, Managing cost of 5.4GW operating Pan-India presence favourable terms track record and capital which Role in Policy assets, experience to identify potential from OEMs and scale to win enhances cost Advocacy in hybrid, storage, opportunities other suppliers complex bids competitiveness peak power and RTC solutions s s s s s s s s s s s s 5
Stable, Contracted and Well Diversified Portfolio of Assets Diversity Across Vendors Reduces Over Dependence on ReNew’s Regionally Diversified Utility Portfolio (1) (2) Single Vendor (3) Wind Vestas Wind Envision 8% 1% GE KGEPL 8% 1% Suzlon Energy 22% Wind World 5% Inox Wind 6% Siemens Gamesa 100 MW 3,058 MW ReGen Powertech 41% Senvion 6% 2% 578 MW Offtake Mix (4) 1,346 MW Solar Vikram Solar ZNShine Rest JinkoSolar 736 MW Central 6% 5% 21% First Solar 2% 560 MW Agency Longi Solar Maharashtra 6% 48% 4% 10% 777 MW Hareon Risen 16% 1% Zhongli 2,785 MW Hanwha 9% Renesola 10% Karnataka 3% Trina Solar Private 11% 100 MW 4% Counterparty Gujarat Canadian Solar 5% 5% Hefei JA Solar 14% 21% Solar – 5.0 GW Wind – 5.2 GW ~60% of ReNew’s total offtake is to central agencies, private counterparties and Gujarat DISCOM (highest rated DISCOM) Source: Company information Note: Including operational as well as under development capacity as of Aug-2020 and includes Distributed Solar capacity 1. As of August 2020 2. Includes only operational and contracted capacity 6 3. Contracted capacity including operational and under development capacity for which equipment purchase contracts have been entered into. 4. Andhra Pradesh includes APSPDCL; Gujarat includes GUVNL; Karnataka includes BESCOM, M ESCOM, HESCOM and GESCOM; M aharashtra includes M SEDCL; M adhya Pradesh includes M PPM CL; Rajasthan includes JDVVNL, JVVNL, AVVNL and RREC; Telangana includes TSSPDCL and TSNPDCL; Tamil Nadu includes TANGEDCO; Central Agency includes SECI, NTPC & PTC.
End-to-End Project Execution Capabilities • Wind farms selection done jointly by Wind Resource and PD teams • Access to multiple data sources such as ReNew’s own met-masts (100) spread across 8 states, Site Selection performance data from 5.4GW operating assets, OEM data, reliable public data from multiple agencies • Met Mast planned deployment across multiple states to improve reliability of pipeline • Total of 12,000 acres has been acquired till date Present Across Value Chain Land Acquisition • Leverages regional affairs development team at both construction and operational stage to mitigate RoW / local area issues • 1,600 MW + under self-EPC • Solar procurement fully done in-house and ramping up wind execution team EPC • In-house design team and access to cutting-edge technologies • Team of ~200 in solar EPC including 25 in design, 14 in procurement, 100 + in construction/execution • In-house team for connectivity, readiness of evacuation infrastructure, coordination with Power Grid Corporation of India Limited (PGCIL) and state transmission companies Evacuation • Closely works with government to handle curtailments • ~2.6 GW of total Operational Assets are Self-Operated across solar and wind • 90% of the solar assets are managed in-house Self O&M • Experience in maintaining wind OEMs such as Inox, ReGen, Senvion (Kenersys) and SGRE In-house Solar and Wind EPC Capabilities and Self O&M Provide Significant Cost Benefits 7
Data, Digitalization and Cost Efficiencies to Drive Margins Predictive Analytics Centralized Monitoring Led Cost Efficiency Digitalization Improvements • • Established regional monitoring • Initiatives taken: reduction of • Embedding digital and advanced ReNew Power Diagnostics Centre (RPDC) : State-of-the-art centres, named as ReNew administrative costs, optimization analytics into systems and facility for improving the Power Command and Control of O&M manpower, condition processes performance and reliability of centres (RPC3) based activities and SAP based • ReD Analytics Lab : Full-fledged wind and solar assets maintenance • Real-time monitoring and ‘ReD. Lab’ to bring together • Advanced analytics to identify analysis of respective assets for • Future plan: robotic cleaning cross-functional teams to develop gap between reference and operational efficiency (underway), auxiliary power advanced analytics solutions actual generation and isolate consumption, forecast and • Condition-based solar module • Partnered with McKinsey to drivers such as un-optimized scheduling and e-surveillance of cleaning provide seamless digital pitch for wind and module plant enablement • Thermography and image temperature losses for sola processing to identify EBOP • Wind turbine de-rating and hotspots rectification • Asset health monitoring and maintenance scheduling optimization 8
Recommend
More recommend
