OPIC commits $250m in debt funding to India's ReNew Power
The Overseas Private Investment Corporation (OPIC), a development finance institution backed by the US government, will provide up to $250 million in debt funding to Indian renewable energy producer ReNew Power Ventures.
The capital will be used by special purpose vehicles established by ReNew for the development, construction and operation of four solar power projects totaling 200-300 megawatts, according to a release. ReNew is currently bidding on the projects, which fall under the Indian government's national solar mission (NSM) and are expected to cost at least $333 million in total.
OPIC has pledged its support as part of its goal to support the NSM, which hopes to have 100 gigawatts of electricity nationwide generated by solar power and 60 GW from wind by 2022, up from the current level of 4 GW from solar and 23 GW from wind.
Founded in 2011, ReNew owns more than 2,400 MW in clean energy assets across nine states. Its backers include the Abu Dhabi Investment Authority, Goldman Sachs and the Global Environment Fund (GEF), which committed $265 million last year. The Asian Development Bank is another supporter, having joined Goldman and GEF to invest $140 million in 2014.
OPIC seeks to help solve development challenges in emerging markets, thereby advancing US foreign policy and national security objectives. It is active mostly as an LP - for instance, committing $1 billion to Indian GP LeapFrog Investments and eight other firms in December - but also invests directly in US companies seeking to enter emerging markets.
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