Continuum Green Energy Secures $150Mn To Deploy RE Projects Across India

Continuum Green Energy Secures $150Mn To Deploy RE Projects Across India

Continuum Green Energy (Continuum), a leading renewable energy group in India serving commercial and industrial consumers, has entered into a definitive agreement with Just Climate. Under this agreement, Just Climate will invest Rs. 12.56 billion (approximately US$ 150 million) in new equity to support Continuum’s ongoing deployment of wind-solar-hybrid energy generation and storage projects across India.

Continuum Green Energy focuses on scaling solutions for the highest-emitting and most off-track sectors of the economy. The completion of this transaction is contingent upon meeting certain conditions precedent, including obtaining applicable regulatory and third-party approvals.

Continuum’s energy projects enable its customers to decarbonize with clean, affordable, and reliable renewable energy. Currently, approximately 72% of India’s electricity is generated from coal, with demand expected to grow by 35% between 2019 and 2030. While 2022 saw a peak in wind and solar power capacity additions with 16 gigawatts (GW) installed, only 13 GW was added in 2023. Despite the Indian government’s ambitious target of 500 GW of installed electric capacity from non-fossil sources by 2030, significant private equity capital is required to achieve this goal.

“We are excited to welcome Just Climate as a partner alongside Morgan Stanley Infrastructure Partners and the founders,” said Arvind Bansal, co-founder and CEO of Continuum. “This equity raise, combined with our earlier financing transactions in the bond and credit markets, positions Continuum strongly to continue executing its differentiated, fast-paced, and profitable growth strategy.”

Continuum currently operates and has near-operational projects totaling approximately 2.2 GW of wind and wind-solar-hybrid capacity. The company plans to add a further 1.3 GW over the next 24 months to meet the growing demand for renewable energy from its expanding customer base.

Just Climate’s investment in Continuum will come from its $1.5 billion Climate Asset Fund I, launched in 2023 to focus on Industrial Climate Solutions. Just Climate is committed to directing capital flows to the Global South, including India. “We have been following Continuum since early 2023, given its leading position in supplying renewable energy to industrial consumers and its extensive experience in constructing and managing wind and wind-solar-hybrid projects in India,” said Tushar Kumar, Partner at Just Climate.

“Continuum’s renewable energy deployment will help displace coal power generation, achieving the significant greenhouse gas emissions abatement we seek in our investments while managing impacts on people and the planet. Continuum is our first investment in India from our Industrial Decarbonization Fund and complements our portfolio of industrial decarbonization solutions in the United States and Europe.”

North Haven Infrastructure Partners I, managed by Morgan Stanley Infrastructure Partners, has been an investor in Continuum since 2012. “It has been a privilege to partner with Continuum’s management team,” noted Raja Parthasarathy, Managing Director at Morgan Stanley Infrastructure Partners. “Since our investment, Continuum has consistently delivered high-quality projects with a superior customer value proposition, while diversifying its financing sources to optimize its cost of capital.”

This transaction builds on Continuum’s recent $650 million bond issuance and previous financings from a range of institutional investors across its capital structure, including equity, mezzanine, project finance, private credit, and public bond markets.