APG, Piramal commit $132m to India's Essel Green Energy
Dutch pension fund manager APG Asset Management has committed $132 million, alongside Piramal Enterprises, to Essel Green Energy, the solar power platform of India's Essel Group.
Essel will use the funds to grow the solar business, which currently owns 160 megawatts of assets in four states. Of those assets, 110 MW is operational and 50 MW is under construction. By 2019, the company hopes to have a total capacity of 1,000 MW.
APG and Piramal agreed in 2014 to invest $1 billion in high-growth infrastructure in India over the next four years. The companies see India's renewable energy sector as an attractive target for investment, given Prime Minister Narendra Modi's goal of installing 100 gigawatts of solar power nationwide by 2022 in order to reduce dependence on coal.
"APG is a strong supporter of increased investments in sustainable energy generation," said Hans-Martin Aerts, head of infrastructure investments for Asia Pacific at APG. "We are pleased to support Essel Green Energy in growing its portfolio of solar projects and to contribute to meeting India's renewable energy targets."
The Essel Group has initiated numerous infrastructure projects through its Essel Infraprojects subsidiary, which also runs Essel Green Energy. Sectors in which it operates include roads, power transmission and distribution, and urban infrastructure.
As of January 2016, APG managed EUR405 billion ($457 billion) in assets worldwide.
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