India's Top Five Renewable Energy Project Funding Deals Announced in 2022

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The renewable energy capacity, including large hydro projects in India, accounted for 40.3% of the overall capacity mix at the end of September 2022, with a 163.7 GW capacity, according to the data from Central Electricity Authority (CEA) and Mercom’s India Solar Project Tracker.

The rise in installations was also supported by the increased number of investments in renewable projects across India.

The investments in the Indian solar sector alone during the first nine months (9M) of 2022 totaled $7.6 billion (~₹629.41 billion), per Mercom India Research’s latest report, Q3 2022 India Solar Market Update.

The top five renewable project funding deals that grabbed the headlines in 2022:

Independent power producer ReNew Power announced a partnership with twelve international lenders for what is deemed to be the largest External Commercial Borrowings project finance loan totaling $1.1 billion in India’s renewables sector for any single project. Led by Netherlands-based Dutch multinational bank Rabobank, the loan will be used for ReNew’s hybrid round-the-clock (RTC) battery-enabled renewable project.

The Indian Renewable Energy Development Agency (IREDA) approved a ₹44.45 billion (~$537.14 million) loan to SJVN Green Energy to develop a 1 GW solar project in Bikaner, Rajasthan. SJVN had bagged the project tendered by IREDA under the CPSU Phase-II (Tranche-III) program under viability gap funding to develop a grid-connected solar project. The project is to be commissioned within 36 months from the letter of award and will connect to the 400/200 kV Bikaner-II substation.

Renewable energy platform Continuum Green Energy raised $350 million (~₹27.9 billion) from two marquee global institutional investors to finance the expansion of its clean energy projects. The fund-raising round allowed the investors to issue an additional $50 million (~₹3.99 billion) on fulfilling certain conditions.

Adani Green Energy raised a $288 million (~₹21.76 billion) financing facility by extending its construction financing framework to $1.64 billion (~₹124 billion) for its under-construction renewable asset portfolio through agreements signed with leading lenders. The facility is expected to help finance the company’s 450 MW of wind-solar hybrid power projects in Rajasthan.

Tata Power secured a ₹4.5 billion (~$54.3 million) trade finance facility from Japan-based Mitsubishi UFJ Financial Group for two solar projects. The funds will be used for a 100 MW solar project in Parthur, Maharashtra, and a 120 MW solar project in Mesanka, Gujarat. Both projects will be executed by TP Kirnali, a wholly owned subsidiary of Tata Power Renewable Energy, the clean energy arm of Tata Power.