Singapore’s GIC, ADIA invest $495m more in Indian clean energy firm Greenko

Photo: Greenko website

Sovereign wealth funds GIC Holdings Pte Ltd and Abu Dhabi Investment Authority (ADIA) have agreed to invest a combined $495 million in Greenko Energy Holdings in one of the largest funding rounds by an Indian clean energy producer.

GIC and ADIA have invested $1.55 billion till date in Greenko Group and after this funding round, the Hyderabad based firm will have an enterprise value of around $6 billion.

While GIC and ADIA hold 61% and 15%, respectively, in Greenko, founders Greenko Group president and joint managing director Mahesh Kolli and Anil Kumar Chalamalasetty, chief executive and managing director, together hold 24% in the company.

“This is new equity that has been put in and will support the new strategy for energy storage. For renewable growth to continue, energy storage is the critical infrastructure required. The equity is to support energy storage and support fixed renewable energy,” said a person aware of the latest funding round requesting anonymity.

Greenko Group planning to set up India’s first large integrated clean energy storage project along with generation projects totalling 10 gigawatt (GW) at an estimated investment of around 50,000 crore, Mint reported on 5 June 2018. The firm among others has also bid for Andhra Pradesh government’s tender for building India’s largest energy storage project to build an ‘energy shifting solution’ of 400 MW.

Last year Greenko bought Orange Renewable from Singapore’s AT Capital Group at an enterprise value of $1 billion. The new overseas funding comes in the backdrop of the National Democratic Alliance government coming back to power. The government’s next priority is to bring a change in the energy mix and was articulated by power minister Raj Kumar Singh as he took charge last week. India is running the world’s largest renewable energy programme.

Spokespersons for ADIA, GIC and Greenko couldn’t be immediately contacted.

“Renewable power cant be scheduled today nor is it flexible. While the discoms are getting solar power today it can’t help see the morning or the evening peak,” said the person cited above.

Greenko plans to make solar and wind power available round the clock by creating large water pump storage projects. Greenko will leverage its hydro capacities to set up closed loop water storages, raising water to different heights and then releasing it into lower reservoirs to generate electricity on demand.

Greenko has a total renewable energy operational capacity of 4.85GW, and is constructing 2.5GW of storage projects that can support 6GW of renewable generation capacity.

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