Indian renewable energy company Greenko announced Tuesday a deal for a US$495 million equity raising from Singapore state-owned investment company GIC and an entity owned by the Abu Dhabi Investment Authority (ADIA).
After the fund-raising, GIC will remain the majority shareholder of Greenko, the Indian company, which focuses on wind, hydro and solar power, said in a filing to SGX.
Ang Eng Seng, chief investment officer for infrastructure at GIC, said Greenko’s innovative uses of hydro storage and renewable power will help utilities mitigate intermittency issues, increase the penetration of renewable energy in India, while reducing the country’s dependence on thermal power.
”As a long term investor, we are very pleased to be supporting Greenko’s next phase of growth, which will enhance clean energy offerings and benefit communities in India in the long run,” Ang said in the statement.
The funding commitment is for two storage projects with a total capacity of 2.4 gigawatts, with 1.2 gigawatts located in Pinnapuram and the remainder in Saundatti, the filing said.
The projects, which will have a total capital outlay of US$2 billion, are expected to be completed and operational in 2022, Greenko said. The Pinnapuram project has reached financial closure, and the Saundatti project is in advanced discussions, the company said.
Greenko said it was working to make the use of renewable energy more reliable, using scheduling and forecasting of energy use.
“Indian energy markets are transitioning from deficit markets to demand-driven contracts requiring reliable, flexible and cost-competitive energy,” Anil Chalamalasetty, Greenko’s managing director and CEO, said in the statement.
“Greenko is focusing on building integrated renewable energy assets with storage to address these markets by competing with conventional energy assets like thermal on quality, quantity and cost,” he added.
Greenko has 4.2 gigawatts in its operational portfolio, with more than 7 gigawatts under construction, the filing said.
GIC has over US$100 billion in assets under management; it manages Singapore’s foreign reserves.
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