ReNew Power takes venture funding to $390 million

ReNew Power has secured a total of $390 million, or about Rs 2,200 crore, in funding from three investors, in an indication global investors are seeing big prospects in the Narendra Modi government’s emphasis on green energy. 

 

The company on Thursday said it reached the total with additional investments of $140 million from the Asian Development Bank, GEF SACEF India and Goldman Sachs, an original investor in the company.

GEF is a fund managed by the Global Environment Fund (GEF), a leading alternative asset investment firm dedicated to the energy, environmental and natural resources sectors.

The latest funds infusion will enable the company to double its clean energy portfolio to 1,000 mw by 2015. The company owns and operates 460 mw of renewable energy assets in Gujarat, Haryana, Karnataka, Maharashtra and Rajasthan. It has another 500 mw, including a 50 mw solar project in Madhya Pradesh, in the pipeline.

The company is currently in the process of implementing a state-of-the-art data analytics and business intelligence platform, which will monitor its assets in real-time and perform online diagnostics to improving overall wind farm performance.

Siddhartha Shah, principal investment specialist at the ADB said, “We believe this is an important investment in a fast-growing, much-needed sector in India. ReNew Power is well poised to make a material impact in addressing the growing energy needs of the country in a sustainable and environmentally responsible manner.”

Company chairman Sumant Sinha, chairman and CEO, ReNew Power said, “This investment comes at a time when there is a need to accelerate growth in the clean energy sector driven primarily by surging demand and the current energy deficit faced by the country. It puts us in a very comfortable position to select high quality projects, ensuring greater returns for our stakeholders.”

Ankur Sahu, co-head of private equity in Asia at Goldman Sachs, said, “We welcome ADB and GEF as investors in sharing our commitment to support India’s clean energy needs through their investments in ReNew Power. Building on our initial $250 million investment from 2011, which at the time was the largest investment in India’s renewable energy generation sector, the company continues to grow and create jobs in addition to helping reduce India’s carbon footprint. The addition of these two world-class, clean energy sector investors will provide ReNew Power with additional momentum.”

Source: Times of India