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CPPIB Fuels India’s Largest RE Deal

16 May 2018

Earlier this month, ReNew Power Ventures Limited became India’s largest RE developer following the acquisition of another RE developer. Canadian pension funds had a major role in this landmark transaction. Canada Pension Plan Invest. Board (CPPIB) invested $247 mn in ReNew Power to support the acquisition of Ostro Energy. This is the second invest. made by CPPIB in ReNew Power. CPPIB had acquired an unknown equity share in the Co. with an invest. of $144 mn in Jan’18. Ostro Energy has a total capacity of over 1,100 megawatts & would increase ReNew’s total portfolio to more than 5,600 megawatts. ReNew has expanded its presence across utility solar, rooftop solar & wind energy segments in India. Becoming the largest RE developer in a highly competitive market like India is no mean feat, especially for ReNew Power. In the short period of time the Co. has been able to attract invest’s from Goldman Sachs, Abu Dhabi Invest. Authority, Asian Development Bank & Global Environment Fund, & JERA. Co. has announced a commitment to have 6.5 GW of solar & 5 GW of wind energy capacity operational by around 2022. In order to achieve these ambitious opportunities the Co. is actively & aggressively participating in solar & wind energy auctions at the central as well as the state level in India. Earlier this year, Co. made a commitment to invest $2 bn in the southern state of AP to set up 1 gigawatt capacity each of solar & wind energy capacity. It also pledged $2.15 bn invest. in the state of MH to develop solar, wind, & waste-to-energy projects. The Co. also plans to invest $1.84 bn in the state of Uttar Pradesh to set up 1 gigawatt of solar power & 200 MW of waste-to-energy power plants.

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