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Published on July 7th, 2014 | by Mridul Chadha

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India’s ReNew Power Raises $140 Million From Leading Funds, Including Goldman Sachs

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July 7th, 2014 by  

wind farm india

A wind energy project at Kanyakumari (Tamil Nadu) India

ReNew Power has seen a meteoric rise in the Indian wind energy sector, and plans to become the largest independent renewable energy power producers in the coming few years. To fuel these plans, the company has completed yet another round of equity funding pushing the total funding to $390 million.

ReNew Power Ventures Private Limited has announced that it has completed a fresh round of funding worth $140 million. The contributors to this round of funding are Goldman Sachs ($70 million), the Asian Development Bank ($50 million) and Global Environment Fund ($20 million).

With this round, the total equity investment in the company has now reached $390 million. The company has announced plans to float an Initial Public Offer (IPO) in a year’s time. An investment fund, backed by Goldman Sachs, continues to hold the majority stake in the company.

The Goldman Sachs-backed fund had acquired the majority stake in the company for $200 million in 2011. The fund subsequently invested another $50 million in the company to fuel project development. The company now operates 460 MW of wind energy capacity spread across the country and is also developing a 57.5 MW solar power project.

The company plans to have a renewable energy base of 500 MW by next year. But it would require more investment as it plans to participate in the upcoming auction for solar power projects under the National Solar Mission. The government is also planning to launch the National Wind Energy Mission which would usher in the second revolution in India’s wind energy market. Two years ago the company had announced plans to invest $1.1 billion in renewable energy projects and had 1,000 MW of wind energy capacity in pipeline.

The new Indian government has expressed its plans to aggressively expand the renewable energy infrastructure in the country to meet the rising demand for electricity. As a result, a number of renewable energy companies have attracted investments from international private investors and development banks.

Recently, GE Energy Financial Services took an equity stake in India’s largest solar power project owned by Welspsun Energy for a price of $24 million. Asian Development Bank paid $50 million to pick up a 13.3% equity stake in Welspun Renewables Energy Limited (WREL). WREL also managed to raise an additional $35.5 million through sale of debentures to a subsidiary of the German development bank, KfW.

Like ReNew Power, Welspun Renewables Energy may also consider raising more capital through an IPO as the government announces ambitious programs to expand renewable energy capacity. Companies backed by such large global investment banks and multilateral developments banks would likely get a good share price at the stock markets.

Image credit: wind turbines in India via Shutterstock

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About the Author

currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.



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