Japanese investors pick 10% stake in ReNew Power
In what marks the entry of Japanese investors in the Indian renewable energy market, its leading power company JERA Co Inc picked up a 10 per cent stake in ReNew Power Ventures Pvt Ltd. The deal size is estimated to be $200 million through the subscription of newly issued shares by JERA. With this latest round of investment, ReNew is now valued at $2 billion.
JERA is a joint-venture between two of Japan’s largest utilities companies, Tokyo Electric Power Co Inc and Chubu Electric Power Co Inc. JERA, currently, operates approximately 6 Gw of energy assets globally across North America, the West Asia and South East Asia.
“As a ReNew Power shareholder, we will seek to contribute to the company by making available technical, operational, project development, and management experience gained through our global power businesses,” said Yuji Kakimi, president of JERA.
ReNew Power is the first company in India to cross 1 Gw of commissioned wind energy capacity. ReNew also emerged as the largest winner in the auctions conducted by the Solar Energy Corporation of India, winning almost 10 per cent of the total capacity of 500 Mw for rooftop projects. Further, the company has won the mandate to install 5 Mw of renewable energy capacity pan-India for the Indian Railways.
Sumant Sinha, chairman and CEO of ReNew Power, said, “We are delighted that JERA has chosen to enter the Indian renewable energy sector by investing in our ever-expanding and fast-growing company. 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.”
ReNew Power Ventures Pvt Ltd, an independent power producer, has over 3,000 Mw of commissioned and under-construction wind and solar capacity across the states of Delhi, Gujarat, Haryana, Punjab, Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, Telangana, Jharkhand, Uttar Pradesh, West Bengal, Tamil Nadu, Himachal Pradesh and Andhra Pradesh.
ReNew Power was launched in 2011 with Goldman Sachs. It recently secured long-term debt financing of $390 million from the Asian Development Bank and LEAP. The company said Sumant Sinha remains the majority stakeholder.
Ankur Sahu, co-head of private equity in Asia at Goldman Sachs, said, “An investment from a preeminent organisation 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.”
