India’s Greenko Energy is on track to become one of Asia's largest renewable energy groups after wrapping up $824m of new equity funding to finance its project build-out and make “opportunistic acquisitions”.
The latest funding, which includes $495m first announced in June, includes major new commitments from Greenko’s two biggest shareholders, Singapore sovereign wealth fund GIC and its Abu Dhabi counterpart ADIA.
Greenko has 4.2GW of operating wind and solar capacity and a further 7GW under construction. Signaling its further ambitions, which includes warrants for more equity to fund future growth, Greenko CEO Anil Chalamalasetty said it plans to build “integrated renewable energy assets with storage … competing with conventional energy assets like thermal in quality, quantity and cost”.
Greenko is emerging as the largest of a clutch of new players in the Indian renewables market as the nation chases ambitious goals of 100GW of solar and 60GW of wind by 2022, then 500GW by 2030.
The company said the new funding will be used for a strategy that includes “opportunistic and valuable acquisitions”, as well as a major energy-build programme.
Greenko last year showed its willingness to engage in large-scale M&A activity when it bought India’s Orange Renewable and Skeiron, adding about 1.3GW to its portfolio. It also attracted Siemens Financial Services as a co-investor in a 200MW wind farm it is developing, marking the debut of the German group in the Indian renewables sector.
Like other groups active in the sector, Greenko is facing the challenges that come with meeting India’s stretching ambitions. For example, it has a significant presence in Andhra Pradesh, where the new state government recently unsettled the renewables sector by stating it wanted to renegotiate existing power deals with wind and solar projects.