Japanese utilities invest in ADIA-backed ReNew Power

The $200m equity injection, which values the developer at $2bn, marks the first step of Tokyo Electric Power and Chubu Electric Power into India’s energy sector.

JERA, a joint venture between two of Japan’s largest utilities, has invested $200 million for a 10 percent stake in ReNew Power, valuing the Indian renewable energy developer at $2 billion. 

Tokyo Electric Power and Chubu Electric Power set up JERA in 2015 to invest in assets across the energy supply chain around the globe. The JV, which currently operates approximately 6GW across North America, the Middle East and Southeast Asia, is making its debut in the Indian market through the ReNew Power investment. 

The Indian developer has been backed by Goldman Sachs, who remains the majority shareholder, since its founding in 2011. The company also attracted equity from the Abu Dhabi Investment Authority, the Global Environment Fund and the Asian Development Bank in subsequent fundraises. 

ReNew Power has since been active raising debt, securing $390 million in financing from the ADB last month for the development of Indian projects totalling 709MW. That came after it collected $250 million from the Overseas Private Investment Corporation to fund the construction of a 400MW portfolio of solar facilities in March 2016.

The Indian company has a 1.5GW commissioned capacity of solar and wind across India, with an additional 1.8GW of projects under construction. It was also mandated last November to install 5MW of renewable energy capacity for state-owned Indian Railways and emerged as the largest winner in the rooftop solar auction held by Solar Energy Corporation of India, where it won 10 percent of the 500MW total awarded.