New York August 17 2022: ReNew Energy Global Plc, one of India’s largest renewable power producers, said it has secured a $1 billion loan for a project that can supply round-the-clock clean electricity.
It will borrow the money from a consortium of 12 international lenders, ReNew said in an statement. The loan is the largest overseas borrowing for a single renewable power project in India, it said.
India’s goal to decarbonize its economy and expand power generation from clean sources has made it an attractive destination for global equity and debt capital. Companies including ReNew, Adani Green Energy and Greenko Energy Holdings have chalked out ambitious expansion plans backed by the prospects of affordable, long-term investments in the country’s renewable energy industry.
Overseas debt providers can play a vital role in providing finance as the pace of annual wind and solar installations in India needs to grow fourfold to meet the nation’s 2030 goal, according to a BloombergNEF note. The nation’s renewable energy sector has received over $12 billion cumulatively since 2018 in the form of overseas borrowings, it said.
ReNew, backed by investors including Goldman Sachs Group Inc. and Abu Dhabi Investment Authority, in April roped in Japan’s Mitsui & Co. as an equity partner in the 400-megawatt round-the-clock project. The facility will have solar and wind capacity totaling 1,300 megawatts and battery storage of as much as 100 megawatt hours.
