Forbes India 15th Anniversary Special

Japan's JERA enters India, picks up 10% stake in ReNew Power Ventures

The investment values the company at 2 billion as it prepares for the next phase of growth through the IPO route

Paramita Chatterjee
Published: Feb 14, 2017 07:01:57 PM IST
Updated: Feb 14, 2017 07:09:58 PM IST

Japan's JERA enters India, picks up 10% stake in ReNew Power Ventures

ReNew Power Ventures has raised $200 million from JERA Co, Inc (JERA), a Japanese power company in lieu of a 10 per cent stake. This puts the valuation of the Gurugram-based company at $2 billion.

Established in 2015, JERA is a joint venture between two of Japan’s largest utilities companies, Tokyo Electric Power Co., Inc. and Chubu Electric Power Co., Inc. The investment that marks the entry of JERA in India comes at a time when ReNew Power Ventures is in talks with investment bankers to launch an IPO over the next 12-15 months.

Yuji Kakimi, President of JERA, said: “We will seek to contribute to the company by making available technical, operational, project development, and management experience gained through our global power businesses. JERA currently operates approximately 6 GW of energy assets globally across North America, the Middle East and SE Asia.

Founded in 2011 by Sumant Sinha and funded by Goldman Sachs, that remains the majority shareholder, ReNew Power provides cleaner and smarter energy choices and in an effort to reduce India’s carbon footprint. The company as an independent power producer creates value through reliable and efficient generation of non-conventional power through innovation in solar and wind power solutions. Apart from JERA and Goldman Sachs, other investors in the company include the Abu Dhabi Investment Authority, Asian Development Bank and Global Environmental Fund.

Sumant Sinha, Chairman and CEO of ReNew Power said: “JERA’s investment in us reinforces our capabilities and commitment towards changing the future of India through transforming our country’s energy landscape. ReNew Power will continue to focus on developing sustainable and innovative solar and wind energy solutions and investing in high-quality projects to create positive returns for our stakeholders.”

ReNew aims to play a pivotal role in meeting India’s growing energy needs. In April 2016, ReNew Power achieved 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 over 3,000 MW of commissioned and under construction clean energy capacity across several states such as Delhi, Gujarat, Haryana, Punjab, Madhya Pradesh, among others.

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