ReNew Power looks to raise $150-200 million.

Encouraged by the government’s focus on renewable energy, companies in the sector are starting to raise funds in preparation for new business opportunities.

ReNew Power Ventures Pvt. Ltd is one such company and has started initial discussions to raise about $150-200 million in private equity (PE) funding, according to two people familiar with the discussions. ReNew Power intends to use the funds for generating another 400 megawatts (MW) of solar power.

Founded in 2011 by Sumant Sinha, former CEO at Suzlon Energy Ltd, ReNew Power has close to 600MW of installed and operational clean energy capacity across the states of Maharashtra, Rajasthan, Karnataka, Gujarat, Madhya Pradesh and Haryana. The company plans to add a further 600-1,200MW in capacity.

'ReNew Power has sufficient funds to meet the next level of expansion. But it plans to monetize the current boom in clean energy space and expand further,' the first person cited above said. Names of the PE funds which are in talks with ReNew Power could not be ascertained.

Sinha, chairman and chief executive officer of the firm, declined to comment on the fundraising plans.
As part of its push for clean energy, the government emphasized the need to achieve the 175,000MW target set for clean energy installations by 2022.

According to this year’s budget, this would include 100,000MW of solar power, 60,000MW of wind power, 10,000MW of energy from biomass and 5,000MW from small hydroelectric projects. India’s clean energy capacity is currently 33,000MW.

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