IFC makes $15m investment in green energy firm
International Finance Corp. (IFC), the World Bank’s investment unit, has committed $15 million to India biomass firm power Shalivahana Green Energy. The funds will be used for the company’s domestic expansion.
The Hyderabad-based company currently has facilities in Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa and Tamil Nadu, which collectively generate 200 megawatts of power, IFC said in a statement. Shalivahana Green Energy also aims to launch small-to-medium-sized projects in the biomass, hydro and wind-energy sectors.
In addition to bolstering these operations, IFC will buy up to 1.5 million Certified Emission Reductions (CERs) from Shalivahana's energy projects from 2013 to 2020, through its Post 2012 Carbon Facility. This comes after the Indian government adopted regulations that power plants and similar entities must purchase a portion of their energy from renewable sources.
Renewable energy investments in India have become increasingly popular among private equity investors, and for IFC in particular. Last year, IFC, with Indian private equity firm FE Clean Energy, jointly invested $50 million in Bhilwara Energy, a hydroelectric power and manufacturing group, for a 10.8% stake. In April of this year, it provided a $16 million loan to Gamesa Wind Turbines to fund the construction of a turbine-manufacturing facility.
Earlier this week, IDFC Private Equity also announced its $18 million investment in Indian clean energy producer Green Infra.
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