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JSW Energy to invest Rs 35,500 crore in green energy projects

JSW Energy to invest Rs 35,500 crore in green energy projects

Last Updated: September 15, 2021

Mumbai: The Maharashtra government and power major JWS Energy Ltd on Tuesday signed two MoUs to set up two green projects worth Rs 35,500 crore to generate 6,500 MW clean energy in northern and western Maharashtra, Industry Minister Subhash Desai said.

This would comprise a 1,500 MW hydro-based power project in Nashik and a 5,000 MW wind power project spread across 1,870 hectares in Kolhapur, Solapur, Satara and Osmanabad, to be set up within 18 months.

“The two new projects will supply cheap and green renewable power round the clock, and help Maharashtra reduce its dependence on non-renewable sources of energy,” said Desai.

He assured the company of full cooperation in securing the requisite regulatory support.

JSW Energy Ltd is the power arm of business conglomerate JSW Group, which has 4,559 MW of operational thermal, hydro and solar energy capacity.

“We are making rapid strides towards building a sustainable environment with aspirations to reduce the grip of carbon footprint and curb global warming by encouraging renewable energy as a sector, and attracting multiple power houses to enhance the state’s sustainable energy capacity,” Desai pointed out.

The investment inflow from JSW will account for a considerable increase in renewable energy sources within Maharashtra and provide employment to over 10,000 people, besides giving a fillip to the social-economical-tourism development in these areas.

Besides Desai, those present on the occasion included Joint Managing Director and CEO of JSW Energy Ltd, Prashant Jain, MIDC CEO P. Anbalagan, Additional Chief Secretary Baldev Singh, Development Commissioner Harshdeep Kamble and other officials from both sides.

The minister said that the state has consistently shown strong performance across multiple investment parameters, both during and post the lockdown periods.

“Under the Magnetic Maharashtra 2.0 unveiled by Chief Minister Uddhav Thackeray in 2020, the state has signed MoUs worth Rs 165,439 crore, making it ‘truly magnetic’ for the investors,” Desai said.

Source Link: https://energy.economictimes.indiatimes.com/news/renewable/jsw-energy-to-invest-rs-35500-crore-in-green-energy-projects/86219224

India, UK agree on $1.2 billion investment in green projects and renewable energy

India, UK agree on $1.2 billion investment in green projects and renewable energy

Last Updated: September 03, 2021

India and the UK on Thursday agreed on a USD 1.2 billion investment in green projects and renewable energy to boost India’s green growth ambitions at the 11th India-UK Economic and Financial Dialogue between Finance Minister Nirmala Sitharaman and her British counterpart Rishi Sunak, driving forward the bilateral agenda of an Enhanced Trade Partnership.

Sitharaman and Sunak, who met virtually for the annual summit, signed off the USD 1.2-billion package of public and private investment in green projects and renewable energy in India.

 

This includes a USD 1 billion investment from CDC, the UK’s development finance institution in green projects in India, joint investments by both governments to support companies working on innovative green tech solutions, and a new USD 200 million private and multilateral investment into the joint Green Growth Equity Fund which invests in Indian renewable energy.

A new Climate Finance Leadership Initiative (CFLI) India partnership has also been agreed to mobilise private capital into sustainable infrastructure in India, including clean energy like wind and solar power and other green technologies.

“The UK and India already have strong ties, and today we’ve made important new agreements to boost our relationship and deliver for both our countries,” said Sunak.

“Supporting India’s green growth is a shared priority so I’m pleased that we’ve announced a USD 1.2bn investment package, and launched the new CFLI India partnership, to boost investment in sustainable projects in India as the UK gears up to host COP26,” he said.

“With trade negotiations also coming up, our agreement to be ambitious when considering services will create new opportunities in both markets, supporting jobs and investment in the UK and India,” he said.

At the Economic and Financial Dialogue (EFD), both ministers agreed to be ambitious when considering services in the upcoming UK-India trade negotiations and strengthen the financial market collaboration efforts already underway to finance growth.

The UK also welcomed India’s recent decision to lift the Foreign Direct Investment (FDI) cap in the insurance sector from 49 per cent to 74 per cent which will help British firms to take greater ownership of their operations in India.

According to UK government statistics, UK-India bilateral trade stands at around 18 billion Pounds in 2020 and supports nearly half-a-million jobs in each other’s economies.

The countries have set a goal to double trade by 2030, including through negotiating a Free Trade Agreement (FTA) following an Enhanced Trade Partnership (ETP) agreed between Prime Minister Narendra Modi and his UK counterpart Boris Johnson earlier this year.

The joint statement signed at the end of the EFD covers a broad range of areas, including the financial services and opening up new opportunities for UK financial firms and helping more Indian companies access finance in the City of London.

According to official figures, over the last five years, Indian firms have raised GBP 13.41 billion in Masala, dollar and green bonds listed on the London Stock Exchange (LSE), with the LSE dubbed the “largest global centre for Masala Bonds”.

The two governments also welcomed the launch of the India-UK Global Innovation Partnership under the Trilateral Development Cooperation Framework, wherein India and UK will co-finance equally a fund over 14 years to support the transfer and scale up of climate-smart inclusive innovations from India to third countries.

Progress of the UK-India strategic partnership on GIFT City (Gujarat International Finance Tec-City), India’s first International Financial Services Centre (IFSC), to promote links between GIFT City and the UK financial services ecosystem was also highlighted in the EFD joint statement.

“Both countries welcome that UK banks are the first international banks to set up in GIFT City, underlining the strength of UK-India cooperation. Both sides agree to explore facilitating the dual listing of green, social and sustainable bonds on the London Stock Exchange (LSE) and IFSC exchanges, to enable firms to raise foreign capital,” the statement notes.

Source Link: https://www.moneycontrol.com/news/business/economy/india-uk-agree-on-1-2-billion-investment-in-green-projects-and-renewable-energy-7423131.html

Renewable energy investment in India beats Covid-19 lull

Renewable energy investment in India beats Covid-19 lull

Last Updated: August 20, 2021

India will need a further $500 billion in investment in wind and solar infrastructure, energy storage and grid expansion to reach 450GW capacity target by 2030.

Investment in Indian renewable energy was US$6.6 billion between April and July 2021, beating the total for the previous financial year. (AP)

Investments in the renewable energy sector in India are seeing growth again following the slowdown in the previous financial year due to the onset of the coronavirus disease (Covid-19) pandemic, a recent study by the Institute for Energy Economics and Financial Analysis (IEEFA) found.

Between April and July this year, investment in the Indian renewable energy sector reached US$6.6 billion, surpassing the US$6.4 billion level record in the 2020-21 fiscal year. The findings in the study projected that and the investments have the potential to breach the US$8.4 billion milestones achieved in the 2019-20 financial year before the pandemic struck.

“Rebounding energy demand and a surge of commitments from banks and financial institutions to phase out fossil fuel financing are helping drive investment into Indian renewable energy infrastructure,” Vibhuti Garg, an energy economist at IEEFA, who co-authored the report, said.

The new IEEFA note explores renewable energy investment trends during the 2020-21 fiscal and for the first four months of the ongoing financial year and outlines the key deals made during both periods. It highlighted that the majority of the money flowed through acquisitions which helped in recycling the capital into new projects.

The largest of around 30 deals during the 2020-21 fiscal and in April to July period in 2021-22 financial year was SoftBank’s exit from the Indian renewable energy sector in May 2021 with a US$3.5 billion sale of assets to Adani Green Energy Limited (AGEL). With this acquisition, AGEL became a major investor as well as the world’s largest solar developer.

Other major deals included Engie’s acquisition by Edelweiss Infrastructure Yield Plus for $550 million, Acme’s acquisition by Scatec Solar for $400 million, and Fortum’s acquisition by Actis for $333 million.

Analysis of different types of deals revealed the majority of the other big investments were packaged as debt, equity investment, green bonds, and mezzanine funding.

Indian renewable energy developers are attracting huge investments from green bonds, said Saurabh Trivedi, a research analyst at IEEFA.

“In April 2021, ReNew Power raised money from green bonds with a tenor of 7.25 years at a fixed interest rate of 4.5% per annum, and this was soon trumped in August 2021 by the $414 million 2026 green bond issue by Azure Power Global at a record low 3.575% per year.”

In the latest development, a mega $8 billion special purpose acquisition company (SPAC) transaction between ReNew Power and RMG Acquisition Corporation II has approval from a majority of shareholders, paving the way for a Nasdaq listing with expected trading from August 24.

“This is a landmark transaction as it represents the biggest overseas listing of an Indian company via the SPAC route,” says Trivedi.

IEEFA’s note also points to several very positive developments: investment in India is clearly shifting towards renewables; the government is redoubling efforts to boost energy security and self-reliance by expanding clean energy technologies as demonstrated by Prime Minister Modi’s Independence Day speech, and Indian corporates like Reliance and JSW Energy are making big clean energy commitments.

In addition, the lending portfolios of Indian financial institutions like State Bank of India and Power Finance Corporation now include more renewable energy assets than fossil fuels, a trend which has picked up significantly in the last one to two years, according to the note.

In a report published in February this year, the IEEFA highlighted that India will require a further $500 billion in investment in new wind and solar infrastructure, energy storage and grid expansion and modernisation to reach 450 gigawatts of capacity by 2030.

“The decarbonisation of the energy sector will demand massive amounts of investment, and the flow of capital into this space will need to accelerate rapidly in order to meet India’s clean energy targets and enable a green recovery towards a sustainable economy,” says Garg.

India is currently investing around $18-20 billion in energy generation capacity and a further $20 billion in the grid on an annual basis. To achieve the Sustainable Development Scenario (SDS) in the International Energy Agency’s India Energy Outlook 2021 the country would need to triple its current rate of annual investment to $110bn.

“This is daunting in one respect,” says Garg. “But the financial trends in Indian renewable energy and grid infrastructure over the last two to three years strongly suggest domestic and global capital can support this ambition.”

Source Link: https://www.hindustantimes.com/business/renewable-energy-investment-india-covid-19-ieefa-report-solar-wind-101629397122990.html

CIP to fund renewable energy projects in India

CIP to fund renewable energy projects in India

Last Updated: August 02, 2021

Copenhagen Infrastructure Partners (CIP), among the largest renewable energy focused fund managers globally, has signed an investment agreement through its Copenhagen Infrastructure New Markets Fund I (CI NMF) with Amp Energy India Private Limited (Amp India). The agreement enables joint equity investments in excess of US$200 million in renewable energy projects in India, with the potential for future expansion.

Amp India and CI NMF have targeted an initial 1.7 GWp portfolio of renewable energy projects, delivering clean and green energy to C&I and utility customers. This transaction is CI NMF’s first investment in the Indian renewable energy market and its largest commitment since establishment in 2019.

The partnership will develop and construct a portfolio of 1.7 GWp initially, with the ambition to add additional projects over time. The portfolio comprises approximately 900 MWp in late-stage projects (solar photovoltaic (PV) and hybrid wind/solar PV) and an additional 800 MWp of projects in earlier stages of development.

EY was the exclusive financial advisor and Indus Law acted as legal advisor to AMP India. KPMG India acted as exclusive financial advisor and Trilegal as legal advisor to CI NMF.

Source Link: https://www.energyglobal.com/special-reports/02082021/cip-to-fund-renewable-energy-projects-in-india/

ReNew Power set to acquire assets worth $384 million in Uttarakhand, Telangana

ReNew Power set to acquire assets worth $384 million in Uttarakhand, Telangana

Last Updated:August 11, 2021

New Delhi: ReNew Power on Wednesday said it has signed binding agreements for the acquisition of two renewable energy assets, a 99 megawatt (MW) hydropower project in Uttarakhand and 260 MW solar projects in Telangana, for $384 million.

According to the company press release, these assets will add about $50.7 million to $53.4 million of EBITDA on a full-year basis.

“We believe that the acquisition of these assets is expected to earn an attractive return within our targeted range…,” said Sumant Sinha, founder, chairman, and chief executive officer, ReNew Power.

He added the acquisition of solar assets in Telangana, the hydropower project in Uttarakhand and the recent 200 MW MSEDCL auction win has taken their commissioned and contracted capacity to over 10 GW, setting the company on its target of achieving 18 GW of capacity by 2025.

“Given that the asset is already operational, the acquisition is not only value accretive for us but also presents a lower level of risk. It strengthens our ability to provide firm and round-the-clock power to the grid and compliments our solar and wind assets, filling up an important position in our portfolio,” said Sinha in a separate release.

The firm will acquire Larsen & Toubro (L&T) Uttaranchal Hydropower, which owns the Singoli Bhatwari Hydroelectric Project (SBHEP), from L&T’s subsidiary L&T Power Development. As part of the transaction, ReNew will add the project operations team of SBHEP to its team.

With this acquisition, ReNew has entered into the hydropower sector and SBHEP it will add 200-300 MW of low-cost hydro storage to its portfolio. ReNew Power’s Sinha added that the company will be looking to acquire more hydro assets in future.

In a separate press release on ednesday, L&T said that it will divest its 100 per cent stake in the 99 MW run-of-the-river hydroelectric power plant owned by its subsidiary to Renew Power in line with its focus of divesting non-core assets and improving shareholder value. It added that the transaction is expected to be closed before 30 September 2021 and the sale consideration is Rs 985 crore.

“This development is a significant step in our effort to unlock the value of some of our power development assets to streamline and allocate capital to create long term value for our shareholders. It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organization,” said D K Sen, whole-time director, L&T.

SBHEP is situated on the Mandakini river in Rudraprayag district of Uttarakhand, was operationalised in December 2020 and is expected to have a residual life of nearly 35 years.

Source Link: https://energy.economictimes.indiatimes.com/news/renewable/renew-power-set-to-acquire-assets-worth-384-million-in-uttarakhand-telangana/85235054

Amp Energy Secures $100 Million for its 1.7 GW of Renewable Energy Projects Portfolio

Amp Energy Secures $100 Million for its 1.7 GW of Renewable Energy Projects Portfolio

Last Updated: August 02, 2021

Amp Energy India and CI NMF have targeted an initial 1.7 GW portfolio of projects including solar, wind, and hybrid technologies

Renewable energy-focused infrastructure fund manager Copenhagen Infrastructure Partners (CIP), through its Copenhagen Infrastructure New Markets Fund (CI NMF), has signed an investment agreement with Amp Energy India to enable joint equity investments of over $200 million in renewable energy projects in India. Copenhagen Infrastructure Partners has committed $100 million as part of this agreement.

Amp Energy India, an integrated renewable energy power producer and CI NMF have targeted an initial 1.7 GW portfolio of renewable energy projects, delivering clean and green energy to commercial and industrial (C&I) and utility customers. The portfolio will comprise 900 MW in late-stage projects (solar photovoltaic (PV) and wind-solar hybrid) and an additional 800 MW of projects in earlier stages of development.

Pinaki Bhattacharyya, Co-Founder, Managing Director, and Chief Executive Officer of Amp India, commented, “CIP’s domain expertise is substantial value addition, in addition to being a capital partner. Both will be critical to success as we diversify our portfolio to include solar, wind, and hybrid to provide dispatchable clean energy to our C&I and utility customers. The investment agreement is a key milestone as we march towards our goal of creating the first truly balanced and complete renewable power producer with a 5 GWp target.”

This transaction is CI NMF’s first investment in the Indian renewable energy market since its inception in 2019.

Commenting on the investment, Niels Holst, Partner and Head of CI NMF, said, “As one of the world’s most dynamic and competitive renewable energy markets, India is a key focus for CI NMF, and we are delighted to take this first important step together with a great partner in Amp, which combines an excellent track record and shared values in developing and realizing projects.”

EY was the exclusive financial advisor, and Indus Law acted as legal advisor to AMP India.

KPMG India acted as exclusive financial advisor and Trilegal as legal advisor to CI NMF.

According to Mercom’s recently published 1H and Q2 2021 Solar Funding and M&A Report, announced debt financing activity in 1H 2021 ($8.2 billion in 32 deals) was 125% higher compared to the first half of 2020 when $3.7 billion was raised in 17 deals. Spurred by low-interest rates, a record $2 billion was raised through seven securitization deals in 1H 2021. Cumulatively, over $9 billion has been raised through securitization deals since 2013.

Source Link: https://mercomindia.com/amp-energy-secures-100-million-renewable-energy/