BP commits $70m to Everstone-managed India energy fund
Energy giant BP has agreed to invest $70 million in Green Growth Equity Fund (GGEF), a PE vehicle co-managed by Everstone Group that invests in sustainable infrastructure projects in India.
Launched in 2018 with a target of GBP500 million ($627 million), the fund counts the Indian and UK governments as investors. They earlier committed GBP240 million. Everstone manages the vehicle alongside Lightsource BP, a UK-headquartered solar energy developer that counts BP as a major shareholder. The two firms established a joint venture, EverSource Capital, that focuses on contracted power, distribution infrastructure, and energy services.
The fund has invested in four businesses so far, among them renewable energy project manager Ayana Renewable Power, electric bus operator GreenCell Mobility, and integrated waste management platform EverEnviro. Portfolio companies must contribute in some way to India's decarbonization efforts. BP is open to co-investing in certain deals as well.
“Our investment in GGEF will aim to rapidly scale-up commercially viable low carbon solutions. The portfolio and scale of investments made by GGEF – be it in solar power, mobility solutions or sustainable infrastructure management – is extraordinary. Each one of these will help India achieve its climate goals,” said Sashi Mukundan, president of BP India, according to a statement.
India’s government has set ambitious targets for renewable energy development. It wants the country to generate 175 gigawatts from solar, wind and other renewable sources by 2022. As of the end of May, India had a total installed capacity of 87.3 GW but renewable energy sources only covered 11.7% of total electricity use for the month.
KKR is also active in the renewables space, acquiring a portfolio of solar energy assets from Shapoorji Pallonji Infrastructure Capital earlier this year, while India Grid Trust, a KKR-backed infrastructure investment trust, has purchased several transmission assets. Separately, EQT and Temasek Holdings committed $500 million to the launch of renewable energy platform O2 Power.
Other PE-backed renewable energy producers in India include Sprng Energy, Avaada Energy, Greenko and ReNew Power Ventures.
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