Goldman Sachs-backed ReNew Power Ventures Limited is among the leading independent renewable energy generators in India. The company has announced an ambitious plan to further increase its installed capacity.
CEO and Chairman Sumant Sinha recently announced that the company is looking to double its installed renewable energy capacity from 2.4 gigawatts to 5 gigawatts in the next two years. The company has several wind and solar power projects spread across the country.
The company has grown at a tremendous rate since its launch in January 2011. ReNew Power had earlier claimed to be the first independent renewable energy generator in India to have reached 1 gigawatt of operational capacity. Its capacity addition target for the current year is 1 gigawatt.
The company has slipped slightly over the last few months, narrowly missing out in several highly competitive auctions in the solar and wind energy auctions. Perhaps with a hope of price stabilization in the solar market the company may be able to recover some lost ground.
Sinha told media outlets that his company is well funded to achieve the 5 gigawatt target. Around ₹10,000 crore ($1.56 billion) is the estimated investment needed for this target. Sinha’s company has a strong backing from the likes of Goldman Sachs, Abu Dhabi Investment Authority, Asian Development Bank and Global Environment Fund, and JERA.
The company is also among the very few project developers in India to have successfully raised funds through green bonds.
While the target announced by ReNew Power seems in line with its earlier commitment to have 6.5 gigawatts of solar and 5 gigawatts of wind energy capacity installed by around 2022, it may be much tougher to achieve. The company had to reduce tariffs for more than 500 megawatts of solar power capacity it had secured in the state or Jharkhand. The disagreement with power utilities there resulted in long delay in project commissioning.
Several states are also in the process of implementing power generation forecast obligations for wind and solar power project developers. This would increase the cost and concerns among the investors.
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