Page 5 - AsiaElec Week 31 2021

AsiaElec COMMENTARY AsiaElec

distribution and transmission services.
The study said that independent power pro- SoftBank cited problems faced in acquiring land
ducers with strong foreign financial backing and grid access.
enjoy substantially lower capital costs because However, major shareholders in Indian green
they can access lower-cost financing from over- projects are numerous.
seas investors and avoid domestic borrowing Government of Singapore Investment Cor-
costs that can run as high as 9-10%, said Irwin. poration (GIC) holds a 56% stake in Greenko, an
At the end of June, solar energy accounted Indian firm that holds the second-largest solar
for about 42.3 GW of the overall 384.1 GW of portfolio at 4.5 GW.
installed capacity in India, or about 11% of total Masdar, a renewables and sustainability-fo-
power capacity; wind stood at 39.5 GW or about cused subsidiary of state-owned Emirati hold-
10%; while the combined installed capacity for ing company Mubadala, is a major shareholder
coal and gas totaled 61% of the power mix. in Hero Future Energies—ranked ninth with 1.9
The International Energy Agency (IEA), in GW of capacity.
its 2021 India outlook, agreed with IHS Markit’s Emirati sovereign wealth fund Abu Dhabi
observation that solar power is poised for “explo- Investment Authority (ADIA), which has been
sive growth” in India. explicit about plans to intensify its focus on
IHS Markit projections show that India’s 10 renewables as an attractive asset class, holds sig-
largest renewable companies, which held 13.5 nificant stakes in Greenko and ReNew Power,
GW of solar capacity at the end of 2020, plan to which, with 5.5 GW of solar capacity, is the top
substantially increase their renewables portfo- Indian developer.
lios (see chart below) in the next 10 years to help Goldman Sachs is a major shareholder with
meet the country’s 450-GW goal. a 49% stake in ReNew while Canada Pension
Keeping up momentum behind investments Plan Investment Board has a 16% share. JERA
in renewables, however, means tackling risks holds a 9% share. Quebec’s Caisse de dépôt et
relating to delayed payments to generators, land placement holds a 51% majority stake in Azure
acquisition, and regulatory and contract uncer- Power, which is ranked fifth in the capacity table
tainty, the IEA observed in its report. with 2 GW.
Meanwhile, Japan’s SoftBank ended up sell- The World Bank Group’s International
ing SB Energy India, owner of a 4.9-GW wind Finance Corporation also holds significant
and solar portfolio, to Adani Group for $3.5 bil- stakes in Azure Power and Hero Future Ener-
lion in May. Among the reasons for pulling out, gies. ™

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