India's CESC is expanding its renewable energy business as its platform Purvah Green Power plans to acquire a 1.4-gigawatt operational solar portfolio from ReNew Solar Power for $510 million.

The transaction is valued at around 48.59 billion Indian rupees and is expected to be completed before October 31, according to the company.

The acquisition will strengthen CESC's renewable energy portfolio and support its plan to build a 10 GW renewable energy platform over the coming years.

Solar Portfolio Covers Rajasthan and Karnataka

The assets being acquired include six operational solar projects located across Rajasthan and Karnataka.

More than 90% of the portfolio's capacity is already contracted to the state-run Solar Energy Corporation of India (SECI) through long-term power purchase agreements.

Long-term contracts provide greater visibility over future electricity revenues and are expected to support the financial performance of the acquired assets.

Purvah's Renewable Capacity to Reach 4.8 GW

Following completion of the acquisition, Purvah Green Power's contracted renewable energy capacity will rise to 4.8 GW.

This will include around 1.8 GW of operational renewable capacity and another 3 GW under construction.

Purvah was incorporated in 2023 and focuses on developing and operating solar, wind and hybrid renewable energy projects across India.

The company is building its portfolio as demand for clean electricity continues to increase across the country.

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CESC Strengthens Renewable Energy Push

CESC said the acquisition will accelerate its strategy to create a 10 GW renewable energy platform over the next few years.

The transaction will be funded by CESC's parent company.

CESC is the flagship power utility of the RP-Sanjiv Goenka Group and operates power distribution businesses serving around 4.4 million consumers.

The company is using its existing power-sector presence to expand further into renewable energy as India increases its focus on clean power generation.

India Renewable Energy Sector Expands

The acquisition comes as India's renewable energy industry continues to attract major investments from power companies and infrastructure investors.

Solar power has become an important part of India's clean energy expansion, supported by large-scale projects, government policies and long-term electricity contracts.

For CESC, the purchase of ReNew Solar Power's operational assets provides an opportunity to add established solar capacity while moving closer to its longer-term renewable energy ambitions.