Dubai-based Abraaj Group and the Aditya Birla Group, a $41 billion multinational conglomerate, has announced a partnership to build a gigawatt scale renewable energy platform focused on developing solar power plants in India.
Abraaj will invest in the platform through one of its Funds and the Aditya Birla Group will invest through Aditya Birla Nuvo Limited, the private equity firm said in a statement.
The partnership comes at a time when the demand for power in India is growing as a result of the country’s expanding population, increasing urbanization and related economic activities.
At the same time, the Indian government has created favorable regulatory policies to increase the use of renewable energy, including setting an explicit target to achieve 100 GW of solar power capacity by 2022, compared to the current installed capacity of 4GW.
The new solar power platform will bid for projects tendered at national and state auctions, with the intent to develop and operate utility-scale solar power plants that can provide clean and cost-effective electricity to the national grid across several key states.
Sev Vettivetpillai, partner and global head of Abraaj’s Thematic Funds Business, said: “The gap in energy infrastructure in growth markets translates into a long-term and sustainable investment opportunity.
"Renewable energy is set for explosive growth thanks to technological advances, favourable policies and pricing structures that make it a competitive alternative to conventional power generation. At Abraaj, we see significant opportunity in India, one of the world’s biggest energy consumption markets.”
The Abraaj Group said it has comprehensive investment experience across the energy value chain and has invested $1 billion in 10 investments in global growth markets.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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