British Intl Invt invests $89 M to scale renewable energy in India

British International Investment, formerly CDC Group, the UK’s development finance institution (DFI) and impact investor, has announced a total commitment of $89 million to scale renewable energy capacity in India.

The DFI’s investment is comprised of a Rs 350 crore (US $47 million) follow-on commitment to Fourth Partner Energy, and a Rs 315 crore (US $42 million) project finance debt investment to Thar Surya 1 Private Limited – an Indian subsidiary of Enel S.p.A, Italy (Enel).

“Both the investments will target expansion of renewable power in India and help accelerate the country’s energy transition over the long term,” the company said in a statement, adding that the $47 million commitment to Fourth Partner Energy, will fund around 294 Megawatt of greenfield renewable generation capacity across India, Sri-Lanka, Bangladesh, Indonesia and Vietnam.

The added capacity will increase supply of power to company’s C&I customers and help avoid nearly 400,000 tonnes of carbon dioxide emissions annually. This latest funding brings BII’s total commitment to Fourth Partner Energy to $80 million – with an investment goal of promoting clean energy alternatives to coal, across South and Southeast Asia.

BII’s $42 million debt investment to Thar Surya 1 Private Limited, forms part of an estimated $200 million total project that aims to fund the development, construction, and maintenance of a 300 MW solar project in India. The project is designed to displace thermal generation in the grid, abate 697,000 tonnes of greenhouse gas emissions annually, and meet the equivalent demand of 151,000 consumers in the country.

“Investing to bolster India renewable energy is a critical strategic step toward ensuring the country’s growth ambitions align with its goals to achieve a net-zero carbon future,” Srini Nagarajan, Managing Director and Head of Asia, at BII said.

Under its new five-year strategy, BII has set a target for 30 per cent of its new investments to be in climate finance, with a strong emphasis on investing in clean and renewable infrastructure.

The DFI’s new strategy is driven by its mission to help address some of the urgent challenges posed by climate change, including decarbonising the energy mix, build green energy capacity and helping catalyse growth of the renewable sector in the countries in which it invests.

“We are pleased to put into action BII’s pledge to commit $1 billion in climate finance to India over the next five years. Channelling the best of British finance, BII is thrilled to help expand economic productivity, promote inclusive access to clean energy, and facilitate sustainable growth in India for the long-term,” he said.

Key clean infrastructure investments in India made by British International Investment (under CDC Group) over the last strategy period include, a $30 million directed green lending facility to Tata Cleantech Capital to enhances water and energy efficiency, and reduces greenhouse gas emission in India; in addition to a $10 million investment in Roserve to support wastewater treatment and increase water efficiency in the country.

BII also founded Ayana Renewable Power in 2018, and has committed $230 million to date, helping to mobilise further capital to accelerate green energy capacity for India’s long-term economic development.