EverSource Capital and the National Investment and Infrastructure Fund (NIIF) have come together to back an India-focussed renewable energy platform floated by UK-based development finance institution CDC.
The trio will cumulatively invest $330 million (around Rs 2,340 crore) in Ayana Renewable Power, according to a statement.
EverSource Capital is a joint venture between private equity firm Everstone Capital and British solar power company Lightsource BP. It was set up last year to make green and sustainable investments in India. NIIF is a master fund backed by the Indian government.
CDC had launched its renewable energy platform in late-2017 to develop solar and wind renewable energy assets.
Ayana is building a solar generation capacity of 500 megawatt (MW) with more renewable energy opportunities in the pipeline, the firm said.
“This partnership brings together like-minded institutional, climate-focussed and experienced partners,” said Dhanpal Jhaveri, chief executive of EverSource Capital.
EverSource will provide strategic and operational value additions to Ayana in building a high quality, rapidly scalable and utility-grade renewable energy business. Jhaveri added.
EverSource Capital had last April announced plans to set up the Green Growth Equity Fund (GGEF) with a target corpus of $710 million. Its anchor limited partners include NIIF and the British government.
CDC’s Asia head Srini Nagarajan said that Ayana was set up as part of the institution’s global commitment towards fighting climate change, adding that it had achieved its early objective of attracting fresh capital.
"This investment demonstrates our commitment to invest a further $1.7 billion in India and neighboring countries over the next three years," said Nagarajan. “Within infrastructure, we see further opportunities to provide investment to businesses operating within power generation, power transmission and distribution, transport, the gas midstream and the water sector.”
Other development finance institutions have also invested extensively in renewable energy. For instance, VCCircle reported earlier this month that Germany’s DEG had invested in firm floated by Welspun Renewable Energy founder Vineet Mittal.
VCCircle had earlier reported that French development financial institution Proparco SA was in talks with two players to set up its own renewable energy platform in India.