Green energy attracts global players

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Mumbai, Nov 20: Notwithstanding the ongoing global meltdown, Deutsche Bank and BP are bullish on investment opportunities in India’s renewable sector.

Both Deutsche Bank and BP assert that though there may be financial problems in the short term, the situation will be quite comfortable in medium and long term for India’s renewable sector. The intentions of Deutsche Bank and BP are quite crucial when the Centre has projected an investment of Rs 1,25,000 crore ($26 billion) in the renewable sector during the 11th Five Year Plan to add 14,000 mw to 20,000 mw .

Deutsche Bank global head (asset financing and leasing) Thomas Ruschen told FE, “As an asset financier, our focus is in renewable energy, especially on wind and solar projects along the whole life cycle. We will pursue our funding plans for solar thermal, geo thermal and bio-mass projects in India and provide both debt and equity. We will partner with project developers through the pre-consent and construction phases. The options of JVs with project developers or with minority/controlling stakes will be explored.”

Besides, Ruschen, who was speaking at the sidelines of the conference on renewable energy finance and investment organised by Euromoney, will look at optimal financing structure with longer debt tenors, minimised interest rate and currency risk and monetised Certified Emissions Reductions (CER) revenue stream.

Ruschen said initially the bank may look at the project of 5 to 15 euros. The bank will partner with experienced developers/promoters who have concrete future plans, source additional equity internally and externally when required. Ruschen lauded the government’s initiatives to promote renewable energy and said India has historically supported renewable energy as a part of its energy policy.

Moreover, BP senior finance manager, Asia Pacific Dennis Chan said India offers great opportunities in the renewable energy sector.

He recalled that Tata Power and BP joint venture is currently involved in the expansion of solar mega project in Bangalore.

“However, BP will also explore opportunities in wind power in India. Currently, BP is planning a 1,000mw wind project in the US as we are looking at the scale of the project. India is certainly on our radar but will spell out strategy in the days to come,” he added.

Renewed interest

•Both Deutsche Bank and BP assert that though there may be financial problems in the short term, the situation will be quite comfortable in medium and long term for India’s renewable sector