Japan’s Sumitomo Mitsui Banking Corp (SMBC), Asian Infrastructure Investment Bank (AIIB), and private equity firm Intermediate Capital Group (ICG) have committed to invest $250 million in Amp Energy India, the company’s chief executive officer and managing director Pinaki Bhattacharyya said.
The transaction will soon be formally announced and the proceeds will be used to drive the company’s expansion plans. Bhattacharya co-founded the local arm of the renewable energy company Amp Energy. The firm has a presence in India, the US, Canada, Australia, Japan and Europe.
EY is serving as the financial advisor for the transaction for Amp Energy India. “I welcome the three new marquee investors who have reposed their faith in us with their maiden investments to participate in the unstoppable energy transition journey in India," Bhattacharyya said.
Global investors have been drawn to India’s promising clean energy initiatives, bolstered by the government’s commitment and supportive policies. These investors have injected $78.1 billion into India’s renewable sector over 2014 to 2022.
The heightened interest in the energy sector comes amid a rebound in India’s electricity demand following a decline during the second wave of the pandemic, to reach a new peak of 223 gigawatts (GW) on 8 June. Several deals are currently in progress, including ReNew Energy Global PLC’s strategic partnership with Petroliam Nasional Bhd, the state-run oil and gas company of Malaysia, which was announced on 7 June.
Amp Energy India, with its 2.7 GW portfolio, operates in the commercial and industrial, as well as utility sectors. It counts Lightrock India, Copenhagen Infrastructure Partners, Core India Infrastructure Fund, SMBC and CBRE Caledon Capital Management Inc. as its investors. SMBC had earlier invested in Amp Energy India.
ICG manages assets of $68.5 billion. Beijing-based AIIB has committed around $9.9 billion to 43 projects in India. This investment in Amp Energy assumes significance with India being AIIB’s second-largest shareholder after China.
Queries emailed to spokespersons of EY, AIIB and ICG on Sunday, didn’t elicit any response till press time. A spokesperson for Sumitomo couldn’t be immediately reached.
Amp Energy India has been bidding for green energy projects and recently won CESC’s 150MW wind-solar hybrid power project auction. It also bagged 1 GW solar cell and module manufacturing project as part of the second tranche of the government’s ambitious production linked incentive (PLI) scheme.
Of India’s total installed power generation capacity of 416.05 GW as of 31 March, renewable energy comprising solar and wind account for 125.16 GW, or 66.78 GW and 42.63 GW, respectively. Besides, 82.62 GW of green energy capacity is under implementation, and another 40.89 GW of capacity is under various stages of tendering.
India plans to achieve net-zero carbon emissions by 2070, and reduce carbon intensity by 45% from 2005 levels. With a view to reach net zero carbon emission, India has set a target of 500 GW installed renewable energy capacity by 2030. In a bid to achieve this target, the union ministry of new and renewable energy announced a plan to add 250 GW of renewable energy capacity within five years. Under the roadmap, the Centre will issue tenders for 50 GW of renewable energy capacity every year between FY24 and FY28.
