British International Investment, previously CDC Group, the UK's development finance institution (DFI) has announced that it has committed $89 million (around Rs 676 crore) to scale clean energy capacity in India.
The DFI's investment is comprised of a $47 million follow-on commitment to Fourth Partner Energy, and a $42 million project finance debt investment to Thar Surya 1 Private Limited – an Indian subsidiary of Enel S.p.A, Italy (Enel).
Both investments will target the expansion of renewable power in India.
Thar Surya 1 aims to support the development of a 300 megawatts (MW) greenfield solar project in India.
The $42 million debt investment by BII in Thar Surya 1 Private Limited is a part of the $200 million projects to fund the development, building, and operation of a 300 MW solar facility in India.
The project is expected to replace thermal power in the grid, reduce greenhouse gas emissions by 697,000 tonnes per year, and meet the needs of 151,000 users across the country.
The addition of clean energy to the grid aims to help meet India's heightened energy demand, boost access to affordable, reliable, and sustainable energy, while also increasing productivity for businesses and consumers across the country, the statement noted.
BII's $47 million follow-on commitment to renewable energy company Fourth Partner Energy will fund approximately 294 MW of greenfield renewable generation capacity across India, Sri Lanka, Bangladesh, Indonesia, and Vietnam.
The added capacity will increase the supply of power to the company's C&I (commercial and industrial) customers and avoid nearly 400, 000 tonnes of carbon dioxide emissions annually. This latest funding brings BII's total commitment to Fourth Partner Energy to $80 million – with an investment goal of promoting clean energy alternatives to coal, across South and Southeast Asia.
BII has established a goal of investing 30% of its new investments in climate finance in its new five-year plan, with a significant emphasis on clean and renewable infrastructure.
The DFI's new approach is motivated by its purpose to assist in addressing some of the most pressing climate change concerns, such as decarbonizing the energy mix and increasing green energy capacity, it said.
"As such, these two investments demonstrate our commitment to leverage our partnerships and expertise in the energy sector, to help deploy clean renewable energy at scale and support India's green growth. We are pleased to put into action BII's pledge to commit $1 billion in climate finance to India over the next five years.
Channeling the best of British finance, BII is thrilled to help expand economic productivity, promote inclusive access to clean energy, and facilitate sustainable growth in India for the long-term," Srini Nagarajan, Managing Director and Head of Asia, at BII said.