Introduction to Indias Largest Renewable Energy Company September - - PowerPoint PPT Presentation

Introduction to India’s Largest Renewable Energy Company

September 2020

Disclaimer

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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.

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ReNew: India’s Largest Renewable Energy Company

Large Contracted Capacity(2) Balanced Fuel Mix Profitability Diverse Pool of Funding

Contracted, 4.8GW, 47% Operational, 5.4GW, 53%

US$615MM

EBITDA FY2020

86.7%

Adjusted EBITDA Margin FY2020

US$1.4Bn

Equity Funding

US$4.4Bn(3)

Debt Financing

US$0.6Bn(3)

Cash

Demonstrated track record of

USD Green Bonds, domestic project financing and funding from Overseas Credit Institutions

Backed by Marquee Shareholders

Management

Solar, 5.0GW, 49% Wind, 5.2GW, 51%

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)

Large Scale 5.4GW

Operating Capacity

US$710MM

Revenue FY2020

#1

Renewable Energy Company in India(1)

Disciplined Growth ~2.7x

Capacity Growth (FY2017-20)

~13%

Market Share in Awarded Auctions (FY2018-FY21YTD)

Awarded Capacity by Center and States Since FY18(2,3)

Capacity in MW

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~13% Cumulative Market Share of Capacity Won Since FY18

ReNew Bid Wins Since FY18(2)

Capacity in MW

610 1,065 800 600 761 865 50 300 1,300 1,371 1,930 1,150 1,900 FY18 FY19 FY20 FY21 YTD Solar Wind Hybrid

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 3. Excludes manufacturing bid of 12GW

(2)

13% 9% 10% 26% Market Share (1) 6,010 13,750 6,840 5,900 4,200 6,295 1,890 840 2,500 1,525 10,210 20,885 11,230 7,425 FY18 FY19 FY20 FY21 YTD Solar Wind Hybrid

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ReNew’s Scale has Tangible Benefits

Ability to negotiate favourable terms from OEMs and

• ther suppliers

s s

1 2 3 4 5 6

Technical expertise, track record and scale to win complex bids

s s

Managing cost of capital which enhances cost competitiveness

s s

Pan-India presence to identify potential

• pportunities

s s

Role in Policy Advocacy

s s

Access to data – 5.4GW operating assets, experience in hybrid, storage, peak power and RTC solutions

s s

Wind Solar 6

1,346 MW 736 MW 3,058 MW 2,785 MW 777 MW 578 MW 100 MW 560 MW 100 MW

Solar – 5.0 GW Wind – 5.2 GW

Suzlon Energy 22% Siemens Gamesa 41% Senvion 2% ReGen Powertech 6% Inox Wind 6% Wind World 5% KGEPL 1% GE 8% Vestas Wind 8% Envision 1% First Solar 6% Hareon 16% Hanwha 10% Canadian Solar 14% Hefei JA Solar 21% Trina Solar 4% Zhongli 9% Renesola 3% Risen 1% Longi Solar 4% Vikram Solar 6% ZNShine 5% JinkoSolar 2%

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 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.

Source: Company information

Stable, Contracted and Well Diversified Portfolio of Assets

ReNew’s Regionally Diversified Utility Portfolio (1) (2) Diversity Across Vendors Reduces Over Dependence on Single Vendor (3)

~60% of ReNew’s total offtake is to central agencies, private counterparties and Gujarat DISCOM (highest rated DISCOM)

Offtake Mix (4)

Central Agency 48% Private Counterparty 5% Gujarat 5% Karnataka 11% Maharashtra 10% Rest 21%

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• 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,

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
• 1,600 MW + under self-EPC
• Solar procurement fully done in-house and ramping up wind execution team
• 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

• 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
• Experience in maintaining wind OEMs such as Inox, ReGen, Senvion (Kenersys) and SGRE

Site Selection Land Acquisition EPC Evacuation

End-to-End Project Execution Capabilities

In-house Solar and Wind EPC Capabilities and Self O&M Provide Significant Cost Benefits

• Total of 12,000 acres has been acquired till date
• Leverages regional affairs development team at both construction and operational stage to mitigate RoW /

local area issues

Self O&M Present Across Value Chain

Data, Digitalization and Cost Efficiencies to Drive Margins

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• ReNew Power Diagnostics

Centre (RPDC): State-of-the-art facility for improving the performance and reliability of wind and solar assets

• Advanced analytics to identify

gap between reference and actual generation and isolate drivers such as un-optimized pitch for wind and module temperature losses for sola

• Wind turbine de-rating and

rectification

• Established regional monitoring

centres, named as ReNew Power Command and Control centres (RPC3)

• Real-time monitoring and

analysis of respective assets for

• perational efficiency
• Condition-based solar module

cleaning

• Thermography and image

processing to identify EBOP hotspots

• Asset health monitoring and

maintenance scheduling

• ptimization
• Initiatives taken: reduction of

administrative costs, optimization

• f O&M manpower, condition

based activities and SAP based maintenance

• Future plan: robotic cleaning

(underway), auxiliary power consumption, forecast and scheduling and e-surveillance of plant

Predictive Analytics Centralized Monitoring Led Improvements Cost Efficiency

• Embedding digital and advanced

analytics into systems and processes

• ReD Analytics Lab: Full-fledged

‘ReD. Lab’ to bring together cross-functional teams to develop advanced analytics solutions

• Partnered with McKinsey to

provide seamless digital enablement

Digitalization

Notes: 1. Includes CCPS 2. 1 USD = 75 INR (as of 31st March 2020) 3. Senior USD Green Bonds stated based on the actual USD amount raised

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Access to Diverse Sources of Funding

Equity (1) 24% $1,400 MM Secured Bank Loan 14% $803MM Secured Loan from FIs 21% $1,233 MM Senior Overseas Green Bonds(3) 30% $1,750 MM INR Bonds 10% $603 MM Working Capital Loan $75 MM (1%)

Total US$ 5.9Bn Cash (FY20) US$592 MM

US$1.8Bn raised in overseas green bonds: $475 MM bonds in Feb-2017, $435 MM of USD bonds in Mar-19, $390 MM in Sep-19 & $450 MM in Jan-20 Rated as BB- Stable by S&P, Ba2/ Stable by Moody’s and BB-/ Stable by Fitch Has raised $1.4Bn in equity funding from global financial investors Strong relationships with all major commercial banks in India $600 MM of debt financing from Overseas Private Investment Corporation $389 MM of debt financing from Asian Development Bank Access to working capital loan, buyer/ suppliers credit Access to onshore bond markets with participation from high quality domestic investors

Track Record of Efficient Capital Raising Re-validates ReNew’s Business and Growth Story

Diversified Funding

Outstanding as of 31st March 2020 (US$MM)(2) Net Debt (FY20) US$3,749 MM Project Level Non- Recourse Debt: c.84% All USD bonds are hedged

ReNew’s Expertise in Providing Intelligent Energy Solutions

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• Capability to provide fixed

power + on-demand schedulable peak power

• Solves a key issue for state

utilities in terms of optimal peak power servicing capability

• Built the largest pipeline

(~250MWh) of utility scale battery energy storage systems in the country

• Relationship with top tier

global battery OEMs and System Integrators

• Dedicated team working on

ramping up capability development – self integration and EMS development

• Growth areas include battery

pack assembly and building battery asset management capabilities

• Partnered with Stanford

University for research into battery storage solutions

• > 150 large corporate

customers

• Corporate RE procurement

market is at a nascent stage; this is expected to increase

• High CUF hybrid projects,

bundling with gas, storage

• etc. allows ReNew to supply

reliable power

• ISTS charges waiver till 2023

allows ReNew to set up large ISTS connected hybrid projects in captive construct (low competition space) and provide RE solutions even in non-RE rich states

• Acquired Climate Connect

in June 2020 to give ReNew access to energy management services

• Climate Connect is a digital

analytics, software development, AI and ML company specializing in power markets domains in India FLEXIBLE ON-DEMAND ENERGY STORAGE SERVICES B2B SOLUTIONS ENERGY MANAGEMENT SERVICES

ReNew’S INTELLIGENT ENERGY SOLUTIONS

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Requirements Tentative Project Configuration

• Assured peak power supply for 6 hours split across

two slots during the day (3hr morning slot, 6hr evening slot)

• 80% annual and 70% Monthly CUF requirement
• Tariff escalation of 3% for the first 15 years
• ‘Excess energy’, including green credits, can be

sold outside the PPA 322 MW 150 MWhr BESS (one of the largest utility scale battery deployments in the world) 81MW 900MW 8MWhr 400MW

Peak Power (300 MW tender)



Round The Clock (400 MW tender)



ReNew is staying ahead of the curve in the evolving Indian Renewables landscape by focusing on storage and balanced renewable energy supply

Well Positioned to Execute on Intelligent Energy Solutions

Round The Clock (RTC) And Peak Power Projects To Be Mainstay Of Auctions Going Forward

Notes: While 300MW and 400MW are the PPA capacity, the actual renewable energy capacity deployed would be as per the above configuration