Clean energy company Greenko Energy Holdings, an affiliate of the Singapore government’s sovereign wealth fund GIC, has raised $230 million in fresh funding from Abu Dhabi Investment Authority and the parent firm.
GIC, which acquired a majority stake in Hyderabad-based Greenko Group Plc’s Mauritius entity (Greenko Energy Holdings) for GBP 162.8 million in October is infusing $80 million into the company through one of its affiliates, the company said. GIC will continue to be the majority shareholder.
Abu Dhabi Investment Authority, the government of Abu Dhabi’s investment arm, is investing the remaining $150 million.
Greenko, which has a diversified portfolio of more than 1,000 MW of wind and small hydro assets, also appointed former State Bank of India chairman Om Prakash Bhatt as the company’s non-executive chairman. Greenko Group Plc is listed on London Stock Exchange’s Alternative Investment Market.
The investment in Greenko comes at a time when the union government has set a target of generating 175 GW through renewable energy by 2022. About 60 GW of this mix would come from wind energy and 100 GW from solar energy, according to the 2015-16 economic survey.
Funds raised from the private equity round will enable Greenko to develop new renewable energy projects, including low-risk expansions of existing wind farms the company said on Tuesday.
“With our attractive diversified renewable power portfolio, we will continue to execute on our vision to be the most admired independent power producer delivering multiple gigawatts of clean energy at grid parity to support the growth of the Indian economy,” Anil Kumar Chalamalasetty, chief executive officer (CEO) of Greenko said in a statement.
“We have created a strong and sustainable platform to take advantage of evolving energy market dynamics and strong sector fundamentals accelerated by new government initiatives, and look forward to Mr Bhatt’s guidance as we move forward.”
Apart from increasing installed capacity by developing and building new greenfield assets, Greenko also plans to make “selective” acquisitions. The company plans to increase capacity to 5,000 MW by 2020, Mint reported in March last year.
The country’s renewable energy sector is likely to generate business worth $160 billion over the next five years, a bulk of it from the private sector, according to last year’s economic survey.