ReNew Energy Global Secures USD 100 Million Investment from British International Investment for Solar Growth

ReNew Energy Global Plc has announced a significant investment of Rs 870 crore, approximately USD 100 million, from British International Investment (BII). This funding aims to boost the growth of its solar manufacturing operations in India. The investment will be directed towards ReNew Photovoltaics Private Limited, the company's solar manufacturing subsidiary in India.

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The investment marks BII's inaugural venture into India's solar manufacturing sector, highlighting its dedication to fostering a robust renewable energy supply chain in one of the world's rapidly expanding clean energy markets. BII will acquire a minority stake in ReNew Photovoltaics as part of this transaction, which is pending customary approvals from lenders and regulatory bodies.

Solar Manufacturing Expansion

Established in 2021, ReNew Photovoltaics operates a 6.4 GW solar PV module facility and a 2.5 GW solar cell facility located in Jaipur, Rajasthan, and Dholera, Gujarat. BII's investment will primarily support the expansion of the company's manufacturing capacity with a new 4 GW TOPCon cell facility in Dholera, Gujarat. Once completed, ReNew's total manufacturing capacity will reach approximately 6.4 GW for both modules and cells.

This expansion is expected to generate over 2,000 new jobs and enhance domestic production of high-efficiency solar components. It aligns with India's goal of achieving 500 GW renewable energy capacity by 2030 and supports the Make in India initiative by reducing reliance on imports.

Market Impact and Future Plans

ReNew Photovoltaics' facilities are projected to produce an annual output of 4.0-4.5 GW of modules. While primarily serving ReNew's internal needs, surplus capacity will be available for third-party sales. To date, the facilities have supplied 900 MW to third parties and have additional orders for about 1.5 GW, indicating strong market demand.

Sumant Sinha, Founder, Chairman & CEO of ReNew, stated that this partnership underscores their commitment to delivering top-tier products while making strategic investments for sustainable growth and long-term shareholder value. He added that venturing into manufacturing was a strategic move to secure their supply chain as India progresses towards indigenising its solar supply chain with supportive policies.

Strategic Partnerships and Future Growth

Sinha also mentioned that ReNew currently has 11.5 GW of commissioned wind and solar capacity, with plans for substantial expansion. The company has a pipeline of about 28 GW of projects won through various bids, with power purchasing agreements signed for a significant portion. Execution of these projects will involve batteries and wind and solar plants over the next four to five years.

Regarding capital acquisition talks with other players, Sinha noted that they are continually engaging with investors due to the capital-intensive nature of their sector. Both their manufacturing and independent power producer (IPP) sides require ongoing capital raising efforts.

International Collaboration

Sally Taylor, Minister Counsellor for Climate, Science and Tech at the British High Commission, remarked that this investment in ReNew's solar manufacturing arm is a positive step towards diversifying panel supply and strengthening the UK-India partnership on clean energy. Shilpa Kumar, MD and Head of India at BII, emphasised the importance of this investment in building and fortifying India's renewable energy supply chain.

With inputs from PTI