PE-backed Indian power companies plan solar plants
Adani Group, whose publicly listed power subsidiary is backed by 3i Group, has commissioned India’s largest solar power project in what is its first foray into the renewable energy sector. The project at Kutch in Gujarat has an initial capacity of 40 megawatts but the company plans to expand it to 100 MW.
Separately, Azure Power, a solar power company backed by Helion Venture Partners and Foundation Capital, has commissioned a 5 MW plant in Rajasthan, VCCircle reported. The plant is being set up as part of the first phase of the government's Jawaharlal Nehru National Solar Mission (JNNSM).
"With the commissioning of our third grid connected plant, we have now demonstrated engineering and construction capabilities in three different states in India," said Inderpreet Wadhwa, CEO and founder of Azure Power.
In addition to series A funding provided by Helion and Foundation, the company received $13.6 million last November from DEG, Germany's bilateral development finance institution, and $10 million from the International Finance Corp. in 2010.
India's solar power sector has become increasingly popular with private equity in the last couple of years.
Last October, Argonaut Ventures, Bessemer Venture Partners and New Silk Route Partners invested $50 million in Kiran Energy Solar Power, which also has interests in Gujarat and Rajasthan. The same month, Duron Energy, a solar products manufacturer, received backing from Intel Capital as part of a $20 million commitment to six Indian companies.
Azure represented IFC's first foray into Indian solar power but it followed that up in June 2011 with a $4 million commitment to Sapphire Industrial Infrastructures, a thin-film solar plant operator.
A UN Environment Program report published last July found that India was the world's eighth top market for renewable energy investments in 2010, with total transaction values rising 25% year-on-year to $3.8 billion. The bulk of the money went into wind projects, the report noted, which garnered $2.3 billion worth of investments, followed by $400 million each for solar, and biomass and waste-to-energy.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.