Actis commits $230 million to create Indian renewable energy platform1 min read . Updated: 11 Feb 2015, 05:31 PM IST
Ostro Energy is the fifth such energy platform that Actis has created globally
Mumbai: Global private equity fund Actis Llp has committed $230 million to create an Indian renewable energy platform, Ostro Energy, the fund said in a press release on Wednesday.
Ostro Energy is the fifth such energy platform that Actis has created globally, following Globeleq Meso America in Central America, Zuma Energia in Mexico, Aela Energia in Chile and Atlantic Renovaveis in Brazil. Since 2002, the firm has invested more than $1.9 billion in 27 energy transactions, across 21 countries.
“With shortages of coal and gas, plus the environmental and social challenges associated with hydro and thermal projects, renewable energy is fast becoming critical to the energy supply equation in India," Torbjorn Caesar, partner and co-head of energy at Actis said in the release.
Ostro Energy’s first project Tejuva—a 50.4 megawatt wind project—is already under construction in the Jaisalmer district of Rajasthan. Developed by wind turbine supplier Suzlon Energy, the site has been in the works for more than four years. The project has achieved financial closure and is expected to be completed by mid 2015.
“Tejuva is a significant first step in helping Ostro Energy achieve its objective of becoming a leading wind power company in India. We are looking forward to working with Actis to bring the project to full capacity this year and grow the company’s project pipeline to achieve our business plan objectives," said Ranjit Gupta, chief executive officer of Ostro Energy.
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has $7.6 billion funds under management. Actis focuses on investments in private equity, energy and real estate sector.