ReNew Power raises $265 million via equity, to use fund for capex

NEW DELHI: ReNew Power, a leading solar and wind energy firm, has raised $265 million (Rs 1,700 crore) of equity from the Abu Dhabi Investment Authority, Goldman Sachs and Global Environment Fund, taking its total fund raising to $655 million, which is among the highest in the country after ecommerce firms.

In the latest round of funding, the Abu Dhabi Investment Authority has committed $200 million for a significant minority stake in Sumant-Sinha-led ReNew Power, while existing investor Goldman Sachs has chipped in $50 million to raise its investment in the company to $370 million. Another existing investor, Global Environment Fund, will be investing $15 million to increase its exposure to $35 million, the company said.


ReNew Power has an asset base of over $1.5 billion and expects to finish the year with an asset base of over $2 billion. The company has expanded its wind and solar power plants in line with the government’s ambitious targets for renewable energy. Coal, Power and Renewable Energy Minister Piyush Goyal told ETthis week that the fresh investments in renewable energy projects in India will overtake those in conventional fossil fuel plants.

The latest round of investments is part of the continued flow of large investment in the rapidly expanding renewable energy sector of the country, which aims to add 1.75 lakh megawatts of clean energy by 2022. This month, China’s Sany group announced plans to invest Rs 20,000 crore in renewable projects in the next four years.

Earlier, Japan’s SoftBank Corp along with Bharti Enterprises and Taiwan’s Foxconn Technology announced plans to invest about $20 billion in renewable energy projects, while Gautam Adani plans to invest $4 billion along with SunEdison Inc in solar energy.

Investors are taking note of the country’s focus on renewables. “Goldman Sachs’ additional investment in this fourth round of funding further verifies and symbolises our continued conviction in the company’s strong future growth prospects and commitment to India's focus on clean energy,” said Ankur Sahu, co-head of private equity at Goldman Sachs in Asia.

Sumant Sinha, chairman and chief executive of ReNew Power, which was founded in 2011, said it was an exciting period for renewable energy. “We are at an inflection point where transformational use of natural resources will define our energy future. This fundraise comes at an exciting time for us as we enter a new phase of growth,” he said.

ReNew Power owns about 1,600 MW of wind and solar power projects, of which 700 MW plants are commissioned. The company has plants in Gujarat, Haryana, Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, Telangana and Andhra Pradesh.