Renew Power, India’s largest clean energy firm, plans to double its portfolio of running plants and projects under implementation to 20,000 MW in five years, an ambitious growth plan that has cheered its major investor Goldman Sachs.
NEW DELHI: Renew Power, India’s largest clean energy firm, plans to double its portfolio of running plants and projects under implementation to 20,000 MW in five years, an ambitious growth plan that has cheered its major investor Goldman Sachs.
The expansion would require an investment of Rs 40,000 crore to Rs 50,000 crore, going by the average cost of projects in the industry, although the company did not share financial details. Project economics vary across the country, depending on the cost of land and the intensity of sunlight or wind.
Sumant Sinha-led Renew Power’s aggressive expansion is part of the growing corporate interest in the sector in which Gautan Adani is also expanding his presence with the aim of becoming the world’s biggest renewable energy company with a capacity of 25,000 MW.
“This year despite the impact of Covid-19, the government has been actively bringing out new bids in the renewable energy space and companies have responded enthusiastically,” Renew Power chairman and managing director Sumant Sinha told ET.
Goldman Sach’s MD of merchant banking division Micahe Bruun said growth prospects are encouraging. “We are excited about our investment in Renew and the journey ahead as the company continues to grow and becomes more integrated across the value chain,” Bruun said.
Goldman Sachs holds 48.6% stake in Renew Power and has backed the company for a long time. Renew Power has also raised debt and equity from other major global investors including Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, JERA and Global Environment Fund. Since its inception 10 years ago, the company has seen foreign direct investment of over $1.4 billion from various investors.