Goldman, ADB boost India's ReNew

Goldman Sachs has put an extra $70m into Indian renewable power producer ReNew Power, matching the total commitment of new investors the Asian Development Bank (ADB) and the Global Environment Fund (GEF).

ReNew said the $140m of new equity investments will help it achieve its growth ambitions of doubling its clean energy portfolio to 1GW by the end of 2015.

The ADB comes in with $50m and GEF $20m. They join majority-owner Goldman Sachs, which invested $202m in September 2011 and a further $135m in June last year.

ReNew Power operates 460MW of renewable capacity in five Indian states.

It recently placed a 100MW wind turbine order with compatriot manufacturer Suzlon.

The new injection by Goldman Sachs is the latest example of the US investment giant’s huge appetite for renewables, which has also seen it take big stakes in Denmark’s Dong Energy and Brightsource of the US, as well as backing an independent power producer in Japan.

Ankur Sahu, co-head of private equity in Asia at Goldman Sachs, said: “We welcome ADB and GEF as investors in sharing our commitment to support India’s clean energy needs through their investments in ReNew Power.

“The addition of these two world-class, clean energy sector investors will provide ReNew Power with additional momentum.”

ReNew CEO Sumant Sinha said: “This investment comes at a time when there is a need to accelerate growth in the clean energy sector driven primarily by surging demand and the current energy deficit faced by the country.

“It puts us in a very comfortable position to select high quality projects, ensuring greater returns for our stakeholders.”