Connect with us

Hi, what are you looking for?

CleanTechnica

Green Economy

Canadian Investors Plan Big Investments In Indian Renewable Energy Companies

Sensing a golden opportunity to acquire a stake in leading renewable energy companies in India, Canadian investors are readying nearly a billion dollars.

Sensing a golden opportunity to acquire a stake in leading renewable energy companies in India, Canadian investors are readying nearly a billion dollars.

Image: Zach Shahan | CleanTechnica.com

According to media reports, two Indian renewable energy companies — ReNew Power and Azure Power — may receive investment from major Canadian investors. The reports come at a time when almost all Indian renewable energy companies are struggling with increased apprehensions over policy and regulatory matters as well as a cash crunch in the absence of timely payments.

Asset management company Brookfield is reportedly planning to inject $800 million in ReNew Power Limited, India’s largest renewable energy developer. Goldman Sachs currently holds a 48% stake in ReNew Power and is expected to sell some of its share to Brookfield through this transaction. Abu Dhabi Investment Authority, JERA, Asian Development Bank, Canada Pension Plan Investment Board, and Global Environment Fund are the other minority stakeholders in ReNew Power.

ReNew Power recently became the first Indian company to have achieved 5 gigawatts of operational renewable energy capacity. However, its road to success has not been without challenges. The company, at one time, planned to launch an initial public offering. It did not follow through with these plans likely due to the non-conducive market environment.

CEO Sumant Sinha has expressed serious concerns over the efforts by one of the state government’s to renegotiate renewable energy tariffs. The company is also believed to be facing the challenge of a lengthy delay in payments from power distribution utilities that procure renewable energy. We recently reported that the company could be the latest among several other Indian companies to contemplate sale of operational assets to raise to funds.

CDPQ, an existing investor in Indian solar power developer Azure Power, is planning to inject addition equity worth $75 million to increase its stake in the company. According to a press release, CDPQ will increase its stake in the NASDAQ-listed Azure Power from 41.4% to 49.4% following this investment.

Azure Power is among the leading solar power developers in India with a portfolio of 3 gigawatts, including an operational capacity of 1.8 gigawatts. The company regularly participates in Indian solar power auctions and issues green bonds as well. It had raised $500 million in 2017 and $350 million earlier this year through green bonds.

Given the grand plans announced by the Indian government regarding increased use of non-fossil fuel sources of energy and the plethora of challenges being faced by the companies, this seems to be a good time for investors to pick up stakes in industry leaders and harvest handsome gains later.

 
 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

New Podcast: Cruise Talks Autonomous Driving Tech, Regulations, & Auto Design

New Podcast: Battery Mineral Mining Policies & Regional Trends

Written By

An avid follower of latest developments in the Indian renewable energy sector.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Batteries

Old(ish) Audi e-tron batteries are getting another life in India. In Uttar Pradesh, a German-Indian startup founded by Berlin-based Prodip Chatterjee, Nunam, has turned...

Clean Power

Tata Power is India’s largest integrated power utility, and it is putting more of its weight behind solar now — rooftop solar, no less....

Clean Transport

Mumbai railway stations will be getting EV charging stations as part of a new initiative to promote e-mobility in the Mumbai region. The program...

Clean Power

To ensure only quality equipment is used at solar power projects and, possibly, provide some protection to domestic manufacturers from a flood of Chinese...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.