Over $1 Billion PE Investment Recorded In India’s Renewable Energy Sector In 2015
Global investors and renewable energy project developers have responded with optimism to the change in regulatory and financial environment in India.
International private equity investors poured in over $1 billion in renewable energy companies in India in 2015. Just the top 5 deals in the renewable energy sector crossed a cumulative volume of $1 billion. The investments poured in as the Indian government announced ambitious capacity addition targets for 2022.
By 2022, India aims to have 100 GW of solar power, 60 GW of wind energy, and 15 GW of other renewable energy capacity. This means that over the next 7 years around 140 GW capacity needs to be added across the country.
The largest investment deal involved GE Energy Financial Services and Welspun Renewables Energy. GE Energy Financial Services acquired an undisclosed equity stake in the company. Welspun Renewables Energy, part of the Welspun Group, is one of the leading private sector renewable energy development companies in India; it operates India’s largest solar power project.
ReNew Power Ventures, another private sector renewable energy project developer, raised $265 million from various investors. The company roped in a new investor – Abu Dhabi Investment Authority – which poured in $200 million. The balance investment was made by Goldman Sachs and Global Environment Fund. After these investments, the total private equity investment in ReNew Power increased to $655 million.
The Singapore government’s investment arm, GIC, signed an agreement with Greenko Group Plc for the $253 million acquisition of Greenko Mauritius, believed to be the direct owner and developer of several renewable energy and power assets in India. Greenko owns several power plants in India based on wind, hydro, biomass, and natural gas power technologies, with its largest footprint in the wind energy sector. The company operates over 800 MW power capacity, including 5 wind energy projects across multiple states in India.
Another wind energy project developer, Ostro Energy, raised $230 million from Actis Advisors Limited. Ostro Energy is looking to significantly increase its footprint in India’s wind energy market, and the company plans to add 800 MW capacity over the next few years.
Orient Green Power Limited managed to raise $153 million from Forefront Capital Management Limited. The company is looking to retire debt and possibly expand its operational base across various renewable energy technologies.
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