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Within two months of General Electric’s $24-million investment in Welspun Renewables Energy’s 151-Mw solar project at Neemuch in Madhya Pradesh, the Asian Development Bank (ADB) has invested part of a $50-million committed equity capital in the renewable energy unit of the Welspun Group.
Welspun Renewables Energy, which has interest in solar and wind power projects, plans to add at least 200 Mw of solar power projects and 100 Mw of wind power projects by March 2016.
ADB’s equity infusion “will help demonstrate that profitable investments are achievable in the renewable energy space and will help catalyse more private investments,” the company said in a statement here on Monday.
Welspun has 328 Mw of operational solar and wind projects in Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, and Rajasthan. It plans to expand this to 1,750 Mw over the next three years with an incremental capital outlay of over Rs 11,000 crore, the statement noted.
Vineet Mittal, vice-chairman of Welspun Renewables Energy, said: “With this investment, the renewable energy sector has got the much-needed shot in the arm; it shows the promise this sector can realise and ADB’s investment is a testimony to that.”
“With this (ADB) deal, we can only hope that India becomes a shining example of focusing on clean energy to meet its energy security needs and help build a cleaner, greener India for the generations to come,” Mittal added.
An ADB project document says the investment will “help demonstrate that profitable investments are achievable in the renewable power sub-sector and, as such, will catalyse more private investments in renewable energy.”
Supported by favourable government policies for renewable power, the private sector’s share in the total installed capacity of renewable energy in India is expected to increase from 33 per cent in 2011 to 50 per cent in 2023, it notes.
“The project is expected to generate 540 gigawatt-hours of electricity annually and avoid 400,000 tonnes of carbon dioxide emissions annually from FY17 onwards. The project will further contribute to local employment and tax revenue,” the document adds.
