Strategic Move: Norwegian Stakeholders Secure 49% Share in Indian Transmission Scheme for Smart Energy Financing
In a significant move towards bolstering private capital in the energy sector, a consortium of Norwegian investors has clinched a substantial 49% stake in an Indian transmission project. This development headlines this week’s Smart Energy Finances, accompanied by key industry movements amplifying the sector’s financial landscape.
Norwegian Venture Fuels Indian Transmission
The standout investment by the Norwegian Climate Investment Fund, spearheaded by Norfund and KLP, a prominent Norwegian pension company, amounts to a substantial $9 million injection into the Koppal Transmission Scheme. The fiscal year 2022 award-winning project encompasses the establishment of a cutting-edge 400/220kV substation at Koppal, coupled with the deployment of a 144km 400kV direct current transmission line.
The fiscal year 2022 award-winning project encompasses the establishment of a cutting-edge 400/220kV substation at Koppal, coupled with the deployment of a 144km 400kV direct current transmission line. Additionally, it entails the extension of 40kV GIS Bays at the PGCIL (Power Grid Corporation of India Ltd) Narendra substation.
ReNew, the driving force behind this venture, articulated that this strategic investment dovetails with their ‘farm-down strategy’. This approach involves developers divesting stakes in renewable assets to attract institutional investors seeking sustained, long-term returns while contributing to augmenting renewable capacity on the grid.
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Moreover, the collaborative synergy in project execution and operations with ReNew’s in-house capabilities is anticipated to yield higher returns and mitigate risks associated with completion timelines, thereby fortifying ReNew’s core business of renewable energy development.
In parallel to this pioneering investment, other notable events in the energy financing realm encompass the closure of Gridmatics’ storage fund, financial safety measures undertaken by Siemens, and the sale of a substantial 410MW battery storage pipeline. These developments collectively underscore the dynamic and evolving landscape of smart energy finances worldwide.
In a pivotal moment during Minister Anne Beathe Tvinnereim’s visit to India, Norfund inked a groundbreaking agreement with ReNew, an Indian developer. Tvinnereim’s itinerary also included a visit to SAEL, a pioneering bioenergy company revolutionizing energy production by harnessing straw, traditionally burned in fields. This innovative approach not only slashes greenhouse gas emissions but also serves as a potent solution to combat local air pollution.
“Securing investments crucial for our energy transition requires the mobilization of private capital through public funding. The agreement between the Climate Investment Fund, ReNew, and KLP is a prime illustration of this synergy. It underscores how Norwegian investments play a pivotal role in assisting India to achieve its ambitious target of installing 500 GW of non-fossil capacity by 2030.”
ANNE BEATHE TVINNEREIM, MINISTER OF INTERNATIONAL DEVELOPMENT (Source Norfund)
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Scaling private capital investments fifteen-fold in India- Norfund
