Published on January 23rd, 2017 | by Saurabh Mahapatra0
India’s ReNew Power Gets $390 Million For Renewable Energy Projects
January 23rd, 2017 by Saurabh Mahapatra
One of India’s leading renewable energy generators recently landed a debt financing deal from Asian Development Bank which would help the former set up more than 700 megawatts of renewable energy capacity.
The Asian Development Bank agreed to provide $390 million in debt funding to ReNew Power Ventures, one of India’s largest independent power producers in the renewable energy sector. The funding will go into seven special purpose vehicles owned by ReNew Power Ventures which, in turn, will set up various solar and wind energy projects.
This will be the first transaction to include in its financing plans resources from ADB as well as Leading Asia’s Private Sector Infrastructure Fund (LEAP). LEAP is a funding arrangement provided by Japan International Cooperation Agency (JICA) and is administered by ADB.
With the financing, ReNew Power will develop photovoltaic solar power projects with a combined capacity of 398 megawatts (MW) in Jharkhand and Telangana, and wind power projects with a combined capacity of 311 MW in Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh.
Combined, the projects are expected to generate 1,400 gigawatt hours of electricity and help avoid nearly 1.2 million tons of carbon dioxide emissions per year. The plants will be commissioned by December 2017. The generated electricity will be supplied to their respective state power distribution companies under long term power purchase agreements.
ReNew Power, an independent power producer (IPP) company, generates reliable and efficient non-conventional power through more than 3,000 MW of commissioned and under-construction clean energy projects across 15 states in India.
ReNew Power Ventures is among the largest renewable energy IPPs in India. The company claimed to be the first renewable energy developer in India to achieve 1 GW of operational assets. The company has seen several fundraising rounds over the last few years as it looks to develop 6.5 GW of solar power and 5 GW of wind energy capacity over the next 4-5 years.
The company may also be planning to raise funds through an initial public offer (IPO). According to media reports, the offer size may be around $100-150 million.
ReNew Power has so far attracted equity investments worth $650 million from the likes of Goldman Sachs, Abu Dhabi Investment Authority (ADIA), Asian Development Bank, and Global Environment Fund. These investments helped the company establish 29 wind and solar power projects across 9 states in India.
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