GIC, ADIA invest $495m in India's Greenko
Indian renewable energy producer Greenko Energy Holdings has raised $495 million from its majority owner, Singapore’s GIC Private, and returning investor the Abu Dhabi Investment Authority (ADIA).
The investment will be used for two energy storage projects in Pinnapuram and Saundatti with a total capacity of 2.4 gigawatts, expected to be operational by 2022. Total expected capital outlay for the two facilities is around $2 billion. Greenko has secured financial closure for the Pinnapuram project and is in advanced discussions on the Saundatti project.
Greenko currently manages 4.2 GW of operational assets, with an additional seven GW under construction across wind, solar, and small hydropower assets. The Pinnapuram and Saundatti projects are its first venture into energy storage and are intended to increase the reliability of its services.
“Greenko’s innovative use of hydro storage and renewable power will enable utilities to mitigate the intermittency issues of renewable energy and reduce the country’s reliance on conventional thermal power over time,” said Ang Eng Seng, CIO for infrastructure at GIC, in a statement. “As a long-term investor, we are very pleased to support Greenko’s next phase of growth, which will enhance clean energy offerings and benefit communities in India in the long run.”
ADIA has made several investments in Greenko, most recently participating in a $447 million commitment alongside GIC and Greenko Ventures last year. Following the latest investment GIC will remain the majority shareholder in Greenko, which it took private from London’s AIM market for GBP162.8 million ($252 million) in 2015.
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