Renewable energy start-up ReNew Wind Power Pvt Ltd, founded by prominent deal-maker and former Suzlon Energy COO Sumant Sinha, has received Rs 1,000 crore or $200 million from Goldman Sachs in one of the biggest private investment deals in the renewable energy sector in India.
ReNew Wind Power has several wind projects under development, including a 25 MW wind farm in Gujarat and a 60 MW wind farm in Maharashtra. It plans to expand its wind power portfolio by 200-300 MW annually and aims to hit 1 GW (gigawatt) capacity by 2015. The company has inked business frameworks with Kenersys GmbH, Regen Powertech Pvt Ltd and Suzlon Energy Ltd to establish and operate wind farms throughout India.
“This deal reinforces our commitment to develop sustainable energy solutions for India. Goldman Sachs’ global experience and network in the alternative/clean technology industry will provide us with additional momentum,” said Sumant Sinha, chairman and CEO of ReNew Wind Power.
SaVant Advisers, which is, incidentally, the boutique investment banking and financial advisory firm floated by Sinha last year, was the exclusive financial adviser to ReNew Wind Power.
This is one of the single largest PE deals in the renewable energy sector in India. Although other firms like Moser Baer Photo Voltaic have attracted similar investments, they have done so over multiple rounds of funding.
“This investment underscores Goldman Sachs’ continued commitment to India and support for the country’s clean energy needs. We look forward to teaming with the management, both financially and operationally, to help the company become a leader in India’s renewable energy sector,” Ankur Sahu, co-head of private equity in Goldman Sachs Asia commented on the investment.
Goldman Sachs has invested over $1.5 billion in alternative/clean energy-related companies globally, including Horizon Wind Energy and Nordex AG.
Recently, Hyderabad-based power generation player Suryachakra Power Corporation Ltd has forayed into the wind energy sector by signing a MoU with C Sivasankaran-owned Sterling Group's Winwind Power Energy Pvt Ltd. The agreement involves setting up a 250 MW wind energy project in Tamil Nadu.
IDFC Project Equity, which manages $927 million India Infra Fund, has also invested in power generation firms like Essar Power, Adhunik Power and GMR Kamalanga.
India, which has investments in the wind generation capacity only behind the USA and China, has seen several major development projects announced this year. Suzlon Energy has received an order worth $1.28 billion for supply of wind turbines aggregating to 1,000 MW to Caparo Energy (India). It has also got orders worth $191 million to set up, operate and maintain 150 MW of wind farms for Hindustan Zinc, a Vedanta Group company. Other international players like Gamesa and Vestas are also active in the Indian market.