JERA acquires stake in India's ReNew Power
Japanese energy giant JERA has acquired a 10% stake in ReNew Power Ventures for $200m, to foray into the Indian energy sector.
JERA’s equity investment values the Indian renewable energy firm, founded six years ago, at $2bn.
ReNew Power chairman and CEO said: “Their (JERA) belief and investment in us further reinforces our capabilities and commitment towards changing the future of India through transforming our country’s energy landscape.
“ReNew Power will continue to focus on developing sustainable and innovative solar and wind energy solutions and investing in high-quality projects to create positive returns for our stakeholders.”
JERA’s investment comes within one month of a $390m package granted by the Asian Development Bank (ADB) to ReNew Power for renewable energy projects in India.
ReNew Power was initially funded by Goldman Sachs which remains its majority shareholder. Other investors of the Indian renewable energy company are Abu Dhabi Investment Authority, Asian Development Bank and Global Environmental Fund.
Goldman Sachs private equity in Asia co-head Ankur Sahu said: “An investment from a preeminent organization like JERA is an important corporate milestone. From our first round of funding to found the company just six years ago, ReNew Power has successfully grown to become one of the largest, fastest-growing and well-funded renewable energy companies in India.
“As the company embarks on its next phase of growth, on behalf of all existing shareholders, we welcome JERA as our latest strategic partner.”
In April last year, ReNew Power became the first energy firm in India to achieve 1GW of operational wind and solar energy capacity. The company in November 2016 won a contract to install renewable energy capacity of 5MW throughout India for the Indian Railways.