SMBC and 2 others to invest USD 250 million in Amp Energy India

NEW DELHI:Japan’s Sumitomo Mitsui Banking Corp. (SMBC), Asian Infrastructure Investment Bank (AIIB) and private equity firm Intermediate Capital Group (ICG) have committed to invest $250 million in Amp Energy India, the company’s CEO and Managing Director Pinaki Bhattacharyya said.

The deal will be officially announced soon, with the proceeds to be used to support the company’s expansion plans. Bhattacharya co-founded the local arm of renewable energy company Amp Energy. The company has a presence in India, the US, Canada, Australia, Japan and Europe.

EY is acting as financial advisor on the transaction for Amp Energy India. “I welcome three new investors who have trusted us with their first investments to be part of India’s unstoppable energy transformation journey,” said Bhattacharyya.

Global investors were attracted by India’s promising clean energy initiatives, bolstered by government commitment and supportive policies. These investors pumped $78.1 billion into India’s renewable energy sector between 2014 and 2022.

The surge in interest in the energy sector comes as India’s electricity demand has rebounded after falling during the second wave of the pandemic, hitting a new peak of 223 gigawatts (GW) on June 8. Several deals are underway, including ReNew Energy Global PLC’s strategic partnership with Petroliam Nasional Bhd, Malaysia’s state-owned oil and gas company, announced on June 7.

Amp Energy India, with a portfolio of 2.7 GW, operates in the commercial and industrial sectors, as well as the utilities sector. Investors include Lightrock India, Copenhagen Infrastructure Partners, Core India Infrastructure Fund, SMBC and CBRE Caledon Capital Management Inc. SMBC has previously invested in Amp Energy India.

ICG manages assets worth $68.5 billion. Beijing-based AIIB has committed about $9.9 billion for 43 projects in India. This investment in Amp Energy assumes significance because India is the second-largest shareholder in AIIB after China.

Emailed queries to spokespersons for EY, AIIB and ICG on Sunday did not elicit any response by press time. A Sumitomo spokesman could not immediately be reached.

Amp Energy India is bidding on green energy projects and recently won the CESC auction for 150 MW of wind-solar hybrid projects. It has also bagged a 1 GW solar cell and module manufacturing project under the second tranche of the government’s ambitious Production Incentives (PLI) scheme.

Of India’s total installed power generation capacity of 416.05 GW as of March 31, renewable energy, which includes solar and wind, accounts for 125.16 GW, accounting for 66.78 GW and 42.63 GW, respectively. Besides, 82.62 GW of green energy capacity is under implementation and another 40.89 GW of capacity is in various stages of bidding.

India plans to achieve net-zero carbon emissions by 2070 and reduce carbon intensity by 45% from 2005 levels. To achieve net-zero carbon emissions, India has set a target of 500 GW of installed renewable energy capacity by 2030. To achieve this target, the Ministry of New and Renewable Energy has announced a plan to add 250 GW of renewable energy capacity over five years. As per the roadmap, the Centre will invite tenders for 50 GW of renewable energy capacity every year between fiscal 2024 and fiscal 2028.