Greenko has also secured financial closure for the Pinnapuram storage project and are in advanced discussions for the Saundatti project.
Renewable energy company Greenko Energy Holdings has signed definitive agreements for a primary equity raising of $495 million from an affiliate of GIC and an entity that is ultimately wholly-owned by the Abu Dhabi Investment Authority (ADIA). Post the investment, GIC will continue to remain the majority shareholder of Greenko. GIC and ADIA have invested $1.55 billion till date in Hyderabad-based Greenko group.
In a statement, Greenko said it has an operational capacity of over 4.2 GW diversified across wind, solar and hydro projects, has secured equity commitment for two storage projects with total capacity of 2.4 GW which is 1.2 GW in Pinnapuram and 1.2 GW in Saundatti in Andhra Pradesh. These projects are expected to be completed and operational in the year 2022. These projects will have overall capital outlay of $2 billion.
Greenko has also secured financial closure for the Pinnapuram storage project and are in advanced discussions for the Saundatti project. Greenko is working towards transforming renewable energy to reliable, schedulable and flexible energy through forecasting and digitisation, building an intelligent energy utility platform as round-the-clock (RTC) flexible renewable power is expected to replace fossil fuels.
Greenko’s investment in storage projects is the first step towards this direction and expected to deliver over 15 billion units of schedulable power generation. “The proposed equity commitment from the existing shareholders shows Greenko’s impeccable track record in creating long-term value to all its stakeholders. Indian energy markets are transitioning from deficit markets to demand-driven contracts, requiring reliable, flexible and cost competitive energy.
Greenko is focussing in building Integrated Renewable Energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quantity and cost.” Anil Chalamalasetty, MD & CEO, Greenko, said in the statement.
The company intends to increase the installed capacity by developing and building new greenfield assets, as well as making selective acquisitions which enhance shareholder value. Greenko has achieved 4.2 GW of operational portfolio and over 7 GW under construction capacity and is well funded to grow into a multi gigawatt portfolio over the next few years. Last year, Greenko bought Orange Renewable from Singapore’s AT Capital Group at an enterprise value of $1 billion.