French multinational utility form ENGIE and Abraaj Group, a private equity investor of Dubai are jointly planning to expand in India with a wind power platform. The aim of the venture is to tap the opportunities in India that are drastically growing in renewable energy space.
ENGIE while commenting on overall joint venture stated that it has acknowledged a strong channel of wind power projects with a capability of 1GW in various states. The company didn’t reveal the financial terms of the venture.
Partner at Abraaj Group, Saad Zaman, stated that the renewable sector of India has witnessed some robust growth in the recent period, and it is expected that the demand for the power will grow constantly. Wind power creation is impending grid uniformity and presents a spirited resolution to lesser average power band rates.
CEO of ENGIE Middle East, Turkey, and South & Central Asia, Sebastien Arbola said, “The platform is all set along with its commitment to offer renewable and clean energy for all.”
The Dubai-based firm has poured more than $1 Billion in 10 projects around the globe in the energy space. Back in 2015, it had collaborated with Indian company Aditya Birla Group to set up solar energy platform capable of 1GW in India.
On the other side, the ENGIE is also involved in an assorted set of actions in India. With the help of its subsidiaries and parent company, the firm is actively operating its power distribution & transmission and gas pipeline operation in the country. It also has its hands in photovoltaic (PV) sector with the operational capacity of 800 MW. With this new venture, it has entered for the first time in the distributed space in India.
Coming onto the investment part in the sector, the renewable energy space in India has seen immense activity post the government declared its intention to boost the capacity target to 175GW in terms of solar and wind by 2022. This comprises 60 GW of wind and 100 GW of solar power capacity. The current renewable energy capacity of India is approximately 44GW.
“Investors and developers have majorly seen renewable energy as a preferred asset, owing to advancement in wind technology and declining prices of solar panels,” said, Senior President and Global Head, investment banking, Yes Securities, Vikas Dawra.
Some of the global players of pension funds such as Caisse de dépôt et placement du Québec and Canada Pension Plan Investment Board are seeking for deals in solar power space in India.