Japanese energy company Jera has acquired 10% stake in India's renewable energy company Renew Power Ventures for $200m.
Jera had recently bought the newly issued shares of Renew Power and it is the Japanese company’s first investment in India. With the stake acquisition, Renew Power is now claimed to be valued at $2bn.
Renew Power was founded in 2011 by Sumant Sinha and was funded by Goldman Sachs, which is still one of the major shareholders in the company.
Apart from the investments made by Jera and Goldman Sachs, the company has also received funding from the Abu Dhabi Investment Authority, Asian Development Bank and Global Environmental Fund.
The company claims that in 2016, it became the first Indian company to achieve 1GW of commissioned wind and solar energy capacity. Currently, the company has about 1.5GW of commissioned capacity with an additional 1.8GW of assets under construction across the country.
ReNew Power chairman and CEO Sumant Sinha 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.
“Their belief and investment in us further reinforces our capabilities and commitment towards changing the future of India through transforming our country’s energy landscape.
“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.”
JERA president Yuji Kakimi said: “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.
“We look forward to strengthening our relationship with ReNew Power and making a positive contribution to India’s economic growth and environmental sustainability by leveraging and augmenting ReNew Power’s success in developing its renewable energy capacity.”
Image: Jera invets $200m in Renew Power. Photo: Courtesy of kongsky/FreeDigitalPhotos.net.