SMBC, AIIB, ICG to Invest $250M in Amp Energy India for Expansion
POWER & RENEWABLE ENERGY

SMBC, AIIB, ICG to Invest $250M in Amp Energy India for Expansion

Japan's Sumitomo Mitsui Banking Corp (SMBC), the Asian Infrastructure Investment Bank (AIIB), and private equity firm Intermediate Capital Group (ICG) have pledged to invest $250 million in Amp Energy India, according to Pinaki Bhattacharyya, the company's CEO and managing director. The official announcement of the transaction is imminent, and the funds will be utilised to drive the company's expansion efforts. Pinaki Bhattacharyya co-founded the Indian branch of Amp Energy, a renewable energy company that operates in India, the US, Canada, Australia, Japan, and Europe.

EY is acting as the financial advisor for the transaction involving Amp Energy India. Bhattacharyya expressed his appreciation for the three esteemed new investors, emphasising their faith in participating in India's unstoppable journey towards an energy transition. This infusion of capital highlights the growing interest of global investors in India's promising clean energy initiatives, which have been further strengthened by the government's commitment and supportive policies. From 2014 to 2022, these investors have injected $78.1 billion into India's renewable sector.

The surge in interest in the energy sector coincides with India's rebound in electricity demand following a decline during the second wave of the pandemic. On June 8, the country reached a new peak of 223 gigawatts (GW). Numerous deals are currently underway, including the strategic partnership between ReNew Energy Global PLC and Petroliam Nasional Bhd, the state-run oil and gas company of Malaysia, which was announced on June 7.

Amp Energy India, with its 2.7 GW portfolio, operates in the commercial and industrial sectors, as well as utilities. Its investors include Lightrock India, Copenhagen Infrastructure Partners, Core India Infrastructure Fund, SMBC, and CBRE Caledon Capital Management Inc., with SMBC having previously invested in Amp Energy India.

With $68.5 billion in managed assets, ICG assumes a significant role, while AIIB, headquartered in Beijing, has committed approximately $9.9 billion to 43 projects in India. The investment in Amp Energy India holds particular importance since India is the second-largest shareholder of AIIB after China.

Queries sent to spokespersons of EY, AIIB, and ICG on Sunday did not receive a response by press time. A spokesperson for Sumitomo was unavailable for immediate contact.

Amp Energy India has been actively bidding for green energy projects and recently emerged victorious in CESC's 150MW wind-solar hybrid power project auction. It has also secured a 1 GW solar cell and module manufacturing project as part of the government's production-linked incentive (PLI) scheme's second tranche.

Out of India's total installed power generation capacity of 416.05 GW as of March 31, renewable energy, including solar and wind, accounts for 125.16 GW, with 66.78 GW and 42.63 GW, respectively. Additionally, 82.62 GW of green energy capacity is under implementation, and another 40.89 GW is at various stages of tendering.

India aims to achieve net-zero carbon emissions by 2070 and reduce carbon intensity by 45% compared to 2005 levels. To reach its net-zero target, the country plans to have 500 GW of installed renewable energy capacity by 2030. The Ministry of New and Renewable Energy has announced a plan to add 250 GW of renewable energy capacity within five years as part of this roadmap. The government will issue tenders as part of the plan.

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Japan's Sumitomo Mitsui Banking Corp (SMBC), the Asian Infrastructure Investment Bank (AIIB), and private equity firm Intermediate Capital Group (ICG) have pledged to invest $250 million in Amp Energy India, according to Pinaki Bhattacharyya, the company's CEO and managing director. The official announcement of the transaction is imminent, and the funds will be utilised to drive the company's expansion efforts. Pinaki Bhattacharyya co-founded the Indian branch of Amp Energy, a renewable energy company that operates in India, the US, Canada, Australia, Japan, and Europe.EY is acting as the financial advisor for the transaction involving Amp Energy India. Bhattacharyya expressed his appreciation for the three esteemed new investors, emphasising their faith in participating in India's unstoppable journey towards an energy transition. This infusion of capital highlights the growing interest of global investors in India's promising clean energy initiatives, which have been further strengthened by the government's commitment and supportive policies. From 2014 to 2022, these investors have injected $78.1 billion into India's renewable sector.The surge in interest in the energy sector coincides with India's rebound in electricity demand following a decline during the second wave of the pandemic. On June 8, the country reached a new peak of 223 gigawatts (GW). Numerous deals are currently underway, including the strategic partnership between ReNew Energy Global PLC and Petroliam Nasional Bhd, the state-run oil and gas company of Malaysia, which was announced on June 7.Amp Energy India, with its 2.7 GW portfolio, operates in the commercial and industrial sectors, as well as utilities. Its investors include Lightrock India, Copenhagen Infrastructure Partners, Core India Infrastructure Fund, SMBC, and CBRE Caledon Capital Management Inc., with SMBC having previously invested in Amp Energy India.With $68.5 billion in managed assets, ICG assumes a significant role, while AIIB, headquartered in Beijing, has committed approximately $9.9 billion to 43 projects in India. The investment in Amp Energy India holds particular importance since India is the second-largest shareholder of AIIB after China.Queries sent to spokespersons of EY, AIIB, and ICG on Sunday did not receive a response by press time. A spokesperson for Sumitomo was unavailable for immediate contact.Amp Energy India has been actively bidding for green energy projects and recently emerged victorious in CESC's 150MW wind-solar hybrid power project auction. It has also secured a 1 GW solar cell and module manufacturing project as part of the government's production-linked incentive (PLI) scheme's second tranche.Out of India's total installed power generation capacity of 416.05 GW as of March 31, renewable energy, including solar and wind, accounts for 125.16 GW, with 66.78 GW and 42.63 GW, respectively. Additionally, 82.62 GW of green energy capacity is under implementation, and another 40.89 GW is at various stages of tendering.India aims to achieve net-zero carbon emissions by 2070 and reduce carbon intensity by 45% compared to 2005 levels. To reach its net-zero target, the country plans to have 500 GW of installed renewable energy capacity by 2030. The Ministry of New and Renewable Energy has announced a plan to add 250 GW of renewable energy capacity within five years as part of this roadmap. The government will issue tenders as part of the plan.

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