Canada Pension Plan Investment Board (CPPIB) on Monday said it has invested an additional $247 million in ReNew Power Ventures (ReNew Power) to support ReNew Power’s acquisition of Ostro Energy.
Canada Pension Plan Investment Board (CPPIB) on Monday said it has invested an additional $247 million in ReNew Power Ventures (ReNew Power) to support ReNew Power’s acquisition of Ostro Energy. Including the initial $144 million investment in January 2018, CPPIB’s total investment in ReNew Power now stands at $391 million.
Earlier on Monday, ReNew Power announced its acquisition of Ostro Energy, which will help it become the largest renewable energy company in India, with a wind and solar power capacity of about 5,600 MW. ReNew Power currently has green energy assets of more than 4,500 MW, which include a commissioned capacity of around 2,800 MW. Ostro Energy, on the other hand, has a total capacity of more than 1,100 MW, out of which nearly 850 MW is already commissioned. Over 65% of the combined portfolio capacity (ReNew Power and Ostro Energy) is already operational.
“We are pleased to further support ReNew Power in its latest acquisition, which further strengthens their position in India’s renewables sector. Our additional investment aligns well with CPPIB’s overall power and renewables strategy, providing greater diversification for the CPP Fund,” Scott Lawrence, managing director, Head of Fundamental Equities, CPPIB said.
“As India’s demand for electricity increases, solar and wind are attractive sources of power. We congratulate ReNew Power on completing their significant acquisition and look forward to a long-term partnership with this highly experienced and proven management team. CPPIB will continue to seek opportunities to expand our power and renewables portfolio as demand grows worldwide along the transition to renewables,” Lawrence added.
Sumant Sinha, chairman and CEO of ReNew Power said, “We are pleased to expand our partnership with CPPIB. CPPIB’s support demonstrates their continued confidence in our capabilities to further grow our market position and their ongoing help to transform ReNew Power into one of the leading clean energy companies in India.”
As of December 31, 2017 CPPIB’s investments in India totalled C$6.4 billion.
Some of the other marquee investors in ReNew Power include Goldman Sachs, Abu Dhabi Investment Authority, Global Environment Fund and Japan’s JICA.