Published on May 13th, 2012 | by Mridul Chadha2
Goldman Sachs-backed Firm to Invest $1.1 Billion in Indian Wind Energy Sector
May 13th, 2012 by Mridul Chadha
One of the fast-emerging wind energy companies in India, ReNew Power Limited, has announced plans to invest Rs 6,000 crore (over $1.1 billion) to set up 1,000 MW of wind energy projects across the country. ReNew Power, which recently commissioned its first wind energy project with 25.2 MW of capacity, sold a majority stake to Goldman Sachs in 2011 for Rs 1,000 crore (~$20 million).
ReNew Power Limited plans to install 1,000 MW of wind projects by 2015, including about 275 MW by March 2013. The 25.2-MW project commissioned recently in Gujarat is registered under India’s Renewable Energy Certificate (REC) scheme. The project could generate significant revenue under this scheme, as the company would also be eligible to sell the Renewable Energy Certificates to the electricity generated.
Several companies have entered the Indian wind energy sector over the last few years. Wind energy technology providers as well as project developers have set ambitious plans to make huge investments and expand capacity in the country. Many international funding agencies and private investors have poured million of dollars into these prospective projects.
ReNew Power was founded by Mr Sumant Sinha, who earlier served as the chief operating officer at Suzlon Energy, one of India’s leading integrated wind energy solutions provider.
While the government withdrew a key tax incentive for the wind energy sector in April of this year, the general notion seems to be that this will have only a short-term impact on the capacity addition, as new market-based initiatives like the REC scheme have been launched. Wind energy finds favor with the investors, as it is has the largest share among India’s installed renewable energy capacity, commanding 70 percent of the share.
Image: Leaflet | Wikimedia Commons