Greenko Raises $495 Mn in Funding For 2.4 GW of Storage Projects

Greenko Energy has announced the signing of definitive agreements for a primary equity raising of $495 mn from an affiliate of GIC and ADIA.

Greenko Energy Holdings, one of India’s leading renewable energy companies, has announced the signing of definitive agreements for a primary equity raising of $495 million (mn) from an affiliate of GIC and Abu Dhabi Investment Authority (ADIA). Post the investment, GIC will continue to remain as the majority shareholder of Greenko.

The company has secured the equity commitment for two storage projects with a total capacity of 2.4 GW (1.2GW in Pinnapuram and 1.2GW in Saundatti). These projects are expected to be completed and operational in the year 2022. And will have an overall capital outlay of $2 billion. Greenko has also secured financial closure for the Pinnapuram storage project and is in advanced discussions for the Saundatti Project.

The firm is continuing to scale up on its innovation and digitisation efforts in the power sector – working towards transforming renewable energy to reliable, schedulable and flexible energy through forecasting and digitisation, building an intelligent energy utility platform as round-the-clock (RTC) flexible renewable power is expected to replace fossil fuels. Its investment in storage projects is the first step towards this direction and expected to deliver over 15 billion units of schedulable power generation.

“The proposed equity commitment from the existing shareholders shows Greenko’s impeccable track record in creating long-term value to all its stakeholders. Greenko’s innovative solutions have helped to place us at the forefront of the clean energy sector. Indian Energy Markets are transitioning from deficit markets to demand-driven contracts, requiring reliable, flexible and cost competitive energy. Greenko is focussing in building Integrated Renewable Energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quantity and cost.” said Anil Chalamalasetty, MD and CEO, Greenko.

The company believes that the combination of its existing Hydro, Solar and Wind projects and it’s 24/7 Renewable Power Strategy to help Indian discoms is the right step in its growth trajectory.

Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, said, “Greenko, as a leader in the Indian renewable energy sector, is well-positioned to execute the Integrated Renewable Energy projects. Its innovative use of hydro storage and renewable power will enable utilities to mitigate the intermittency issues of renewable power, facilitate the increased penetration of renewable power and reduce the country’s reliance on conventional thermal power over time. As a long-term investor, we are very pleased to be supporting Greenko’s next phase of growth, which will enhance clean energy offerings and benefit communities in India in the long run.”