British International Investment allocates $ 89 million to push renewable energy in India

Former CDC Group, now British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, has made a total commitment of $89 million to scale renewable energy capacity in India.

The DFI’s investment is comprised of a Rs 350 crore ($47 million) follow-on commitment to Fourth Partner Energy, and a Rs 315 crore ($42 million) project finance debt investment to Thar Surya 1 Private Limited – an Indian subsidiary of Enel S.p.A, Italy (Enel).

Both the investments will target expansion of renewable power in India and help accelerate the country’s energy transition over the long term, said the company statement.

Further adding that the $47 million commitment to Fourth Partner Energy, will fund around 294 Megawatt (MW) of greenfield renewable generation capacity across India, Sri-Lanka, Bangladesh, Indonesia and Vietnam.

The added capacity will increase supply of power to the company’s commercial & industrial (C&I) customers to help mitigate nearly 400,000 tonnes of carbon dioxide emissions annually.

This latest funding brings BII’s total commitment to Fourth Partner Energy to $80 million – with an investment goal of promoting clean energy alternatives to coal, across South and Southeast Asia.

BII’s $42 million debt investment to Thar Surya 1 Private Limited, forms part of an estimated $200 million total project that aims to fund the development, construction, and maintenance of a 300 MW solar project in India.

The project is designed to displace thermal generation in the grid, abate 697,000 tonnes of greenhouse gas emissions annually, and meet the equivalent demand of 151,000 consumers in the country.

The new five-year strategy will see BII set a target for 30 percent of its new investments in the climate finance space, with a strong emphasis on investing in clean and renewable infrastructure.

The DFI’s new strategy is driven by its mission to help address some of the urgent challenges posed by climate change, including decarbonising the energy mix, build green energy capacity and helping catalyse growth of the renewable sector in the countries in which it invests. BII has also founded Ayana Renewable Power in 2018, and has committed $230 million to date, helping to mobilise further capital to accelerate green energy capacity for India’s long-term economic development.

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