Ravindra Energy Limited (REL) has made significant strides in the renewable energy sector, securing two Letter of Awards (LOA) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the development and operation of decentralized feeder level solar projects in Maharashtra. Additionally, the company has now secured financing to support these initiatives.

Project Details

Ravindra Energy has been awarded contracts for solar photovoltaic power generating stations with an aggregate capacity of 120 MW(AC). These projects are part of the 'Mukhyamantri Saur Krushi Vahini Yojana 2.0' scheme, which aims to implement feeder level solarisation under Component C of the PM-KUSUM Scheme.

Key highlights of the project include:

• The 120 MW(AC) projects will be spread across 23 sub-stations of MSEDCL.
• MSEDCL will enter into a 25-year Power Purchase Agreement (PPA) with Ravindra Energy Limited.

Financing Secured

Ravindra Energy has successfully secured two loans to finance the development of these 120 MW solar projects in Maharashtra. This financing will play a crucial role in supporting the company's solar energy development initiatives in the state, ensuring the timely implementation of the awarded projects.

Strategic Importance

This development marks a significant milestone for Ravindra Energy Limited, positioning the company as a key player in Maharashtra's renewable energy landscape. The long-term nature of the Power Purchase Agreement ensures a stable revenue stream for the company over the next quarter-century. The newly secured financing further strengthens REL's ability to execute these projects effectively.

Government Initiative

The 'Mukhyamantri Saur Krushi Vahini Yojana 2.0' is a state-level scheme that aligns with the central government's PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Scheme. This initiative aims to promote solar energy adoption at the grassroots level, particularly benefiting the agricultural sector.

Market Impact

The announcement of these project awards and the subsequent securing of financing are likely to be viewed positively by investors. These developments demonstrate Ravindra Energy's ability to not only secure large-scale projects in the competitive renewable energy sector but also to arrange the necessary funding for their execution. The company's growing portfolio in solar power generation aligns with the increasing focus on sustainable energy solutions in India.

Ravindra Energy Limited's success in securing these projects and their financing underscores the company's commitment to expanding its presence in the renewable energy sector and contributing to India's clean energy goals.

Ravindra Energy Limited (REL) has unveiled ambitious plans for growth in both its renewable energy and electric vehicle (EV) businesses, as detailed in an investor presentation submitted to stock exchanges ahead of an analyst meeting scheduled for September 22.

Renewable Energy Expansion

REL's renewable energy division is making significant strides towards its goal of achieving a 1 GW operating portfolio by March 2028. The company currently boasts:

• 158 MWp of operational capacity
• 87 MWp under construction
• 258 MWp under development

The company's focus on distributed solar projects has led to the commissioning of 200 MWp of solar projects across over 50 locations. REL has also demonstrated its execution capabilities by developing and selling renewable energy parks with a combined capacity of 700 MWp to large private equity funds.

Financial Projections

REL has provided financial projections for its renewable energy business:

The company expects its operating capacity to grow from 64.3 MWp at the start of FY26 to 502 MWp by the end of FY27.

Electric Vehicle Business

Through its subsidiary EIM (49.5% owned by REL), the company is making inroads into the electric vehicle sector, focusing on heavy-duty electric tractors. Key developments include:

• Completion of homologation for 55-ton EV tractors
• Sale of 125 e-tractors
• Plans to establish an EV assembly plant in Pune with a first-phase investment of Rs 100 crore

EIM has secured an exclusive 6-year agreement with China-based FOTON for electric commercial vehicles, allowing for marketing, assembly, and distribution in India.

Battery Technology and Infrastructure

The company is developing expertise in battery design and lifecycle management, using battery packs from CATL, a world-leading producer. EIM plans to indigenize battery pack production by 2026 and is working on tropicalization of heavy-duty battery packs.

EIM is also focusing on battery swapping technology, which offers advantages such as reduced swapping time (less than 8 minutes) and more efficient use of space compared to traditional charging methods.

Future Outlook

For FY27, EIM projects sales of 1,000 to 1,500 e-tractors and the deployment of 20 to 30 swap stations. The company expects to maintain a gross margin of 3-5% on tractor sales and an EBITDA margin of 50-70% on its Battery as a Service (BaaS) offering.

As Ravindra Energy Limited continues to expand its renewable energy portfolio and venture into the electric vehicle market, the company is positioning itself as a significant player in India's clean energy and sustainable transportation sectors. The upcoming analyst meeting on September 22 is expected to provide further insights into the company's strategic direction and growth prospects.