ReNew Power Ventures said on Tuesday that JERA, a joint venture between Japan’s Tokyo Electric Power and Chubu Electric Power, has bought a 10% stake, worth $200 million, in the company.
With the investment, the Goldman Sachs-funded Indian renewable firm is now valued at $2 billion.
It currently has more than 3 GW clean energy assets in the country. The company’s other investors are Abu Dhabi Investment Authority, Asian Development Bank and Global Environmental Fund.
JERA, which is foraying into the Indian renewable sector with the stake-purchase, currently operates approximately 6 GW of energy assets globally across North America, West Asia and SouthEast Asia.
India, with its plan to have 175 GW of renewable energy capacity by 2022, has recently been an attractive destination for foreign investors in the sector. The UN Environment Program’s ‘Global Trends in Renewable Energy Investment 2016’ report ranked India among the top ten countries in the world investing in renewable energy.
Total foreign direct investment equity inflow in the non-conventional energy sector in India during April 2014 to September 2016 was $1.77 billion.
The country allows 100% foreign direct investment under automatic route for projects of renewable power generation and distribution, subject to provisions of the Electricity Act, 2003.