Japan's JERA to invest $200m in Indian IPP ReNew Power

It will own 10% of the company shares.

ReNew Power, a renewable energy independent power producer, announced an equity fund raise of $200 million for a 10 percent stake in the company through the subscription of newly issued shares by JERA Co., Inc., a Japanese power company.

Following the company’s founding six years ago, this latest investment round now values ReNew Power at $2 billion. JERA is a joint venture between two of Japan’s largest utilities companies, Tokyo Electric Power Co., Inc. and Chubu Electric Power Co., Inc.

This investment in ReNew Power, marks its first entry into India’s energy sector. Yuji Kakimi, President of JERA, said, “As a ReNew Power shareholder, we will seek to contribute to the company by making available technical, operational, project development, and management experience gained through our global power businesses. We look forward to strengthening our relationship with ReNew Power and making a positive contribution to India’s economic growth and environmental sustainability by leveraging and augmenting ReNew Power’s success in developing its renewable energy capacity.”

In April 2016, ReNew Power became the first company in India to achieve 1 GW of commissioned wind and solar energy capacity. In November 2016, the company was mandated to install 5 MW of renewable energy capacity across India for state-owned Indian Railways.

ReNew Power has a commissioned capacity of 1.5 GW with an additional 1.8 GW of assets under construction across India.