One of India’s leading renewable energy IPPs, ReNew Power Ventures, has received another round of equity funding as it prepares for an initial public offering at the Indian bourses.
Goldman Sachs-backed renewable energy developer ReNew Power Ventures Limited recently announced that the Canadian Pension Plan Investment Board invested $144 million in the company. CPPIB also picked up a 6.3% stake in the company during the process. This the latest in a long chain of equity investments for ReNew Power, which is now valued at $2.28 billion.
The latest investment is crucial not only for the company but also indicates the confidence that international investors like CPPIB have in the Indian renewable energy market. Solar power tariffs have crashed significantly over the last few years due to increased competition and the market is aided by falling solar module prices. Wind energy tariffs have also collapsed over the last year as India moved from a regulated tariff regime to one based on competitive auctions.
ReNew Power has remained an active participant in the highly competitive solar and wind energy auctions but has shied away from bidding at levels many industry observers consider financially unviable.
ReNew Power had earlier claimed to be the first renewable energy developer in India to have crossed 1 gigawatt of operational capacity. The company had announced in early 2015 a target to have 5 gigawatts of operational renewable energy capacity in the coming years.
The company has been a favorite of international investors with the likes of Goldman Sachs, Asian Development Bank, JERA, Abu Dhabi Investment Authority, and Global Environment Fund. ReNew Power has been prepping its IPO for quite some time now.