Amp Energy India secures $250 mn investment from Sumitomo and two other firms

Amp Energy India secures $250 mn investment from Sumitomo and two other firms

Sumitomo Mitsui Banking Corp. (SMBC), Asian Infrastructure Investment Bank (AIIB), and private equity firm Intermediate Capital Group (ICG) have committed to investing $250 million in Amp Energy India, according to Pinaki Bhattacharyya, the company’s chief executive officer and managing director.

The transaction will be publicly disclosed soon, and the money will fuel the company’s growth goals. Bhattacharya is a co-founder of Amp Energy, a renewable energy firm. The company has offices in India, the United States, Canada, Australia, Japan, and Europe.

EY is serving as the financial advisor for the transaction for Amp Energy India. “I welcome the three new marquee investors who have reposed their faith in us with their maiden investments to participate in the unstoppable energy transition journey in India,” Bhattacharyya said.

Global investors have flocked to India’s potential sustainable energy efforts, which have been supported by the government’s dedication and supportive legislation. From 2014 to 2022, these investors invested $78.1 billion in India’s renewable sector.

The increased interest in the energy industry coincides with a resurgence in India’s electricity demand following a dip during the pandemic’s second wave, which reached a new peak of 223 gigatonnes (GW) on June 8.

Several transactions are presently underway, including ReNew Energy Global PLC’s strategic alliance with Petroliam Nasional Bhd, Malaysia’s state-owned oil and gas business, which was announced on 7th June.

Amp Energy India has a 2.7 GW portfolio that engages in the commercial, industrial, and utility sectors. Its investors include Lightrock India, Copenhagen Infrastructure Partners, Core India Infrastructure Fund, SMBC, and CBRE Caledon Capital Management Inc. SMBC previously invested in Amp Energy India.

ICG handles $68.5 billion in assets. AIIB, based in Beijing, has pledged $9.9 billion to 43 projects in India. With India being AIIB’s second-largest stakeholder behind China, this investment in Amp Energy is significant.

Amp Energy India has been competing in green energy projects and just won CESC’s auction for a 150MW wind-solar hybrid power plant. It also received a 1 GW solar cell and module manufacturing project as part of the government’s ambitious production-linked incentive (PLI) scheme’s second tranche.

Renewable energy accounts for 125.16 GW of India’s total installed power generation capacity of 416.05 GW as of 31 March, or 66.78 GW and 42.63 GW, respectively. Furthermore, 82.62 GW of green energy capacity is under construction, with another 40.89 GW in various phases of tendering.

India intends to attain net-zero carbon emissions by 2070 and a 45% reduction in carbon intensity from 2005 levels. India has set a target of 500 GW of installed renewable energy capacity by 2030 to achieve net zero carbon emissions.

To meet this goal, the Union Ministry of New and Renewable Energy launched a five-year plan to add 250 GW of renewable energy capacity. Between FY24 and FY28, the Centre will conduct yearly tenders for 50 GW of renewable energy capacity.