Business News/ Companies / News/  ReNew Power plans 1 trillion investment in Maharashtra, Karnataka

Goldman Sachs-backed ReNew Power Ventures Pvt Ltd is planning to develop renewable energy projects in Maharashtra across wind, solar, hybrid power, battery storage and green hydrogen at an investment of 50,000 crore. It plans to invest another 50,000 crore in Karnataka for developing green energy projects.

The company signed memorandums of understanding (MoU) with both the state governments on Tuesday.

“During 2022-2028, Renew Power will invest 50,000 Crs in Maharashtra. This will create 30,000 employment. The investment will be done in renewable energy projects like solar, wind, hybrid energy, battery storage and green hydrogen plant," Maharashtra State Electricity Distribution Co Ltd said in a tweet.

Also taking to Twitter, Maharashtra environment minister Aaditya Thackeray said: “Maharashtra hits a total of 80,000 crores in investment MoUs after @ReNew_Power & GoM signed to agree on the generation of renewable energy, EV batteries & green hydrogen plant in Maharashtra."

The company plans to make the investments over a period of seven years. The investments are expected to create around 60,000 jobs in total in both the states.

Responding to a query from Mint, a company spokesperson said: “The funds for the MoUs with the Maharashtra and Karnataka governments will be sourced from internal accruals and the equity that we plan to raise from recycling existing assets. We may also raise debt if needed."

ReNew Power signed the MoU with the Karnataka government in the presence of chief minister Basavaraj Bommai at the World Economic Forum meet.

The chief minister termed it a milestone in the renewable energy sector in Karnataka. The Karnataka government said that in the first phase ReNew would invest 11,900 crore on ongoing projects in the state, which would be operationalised in the next two years.

In the second phase the company plans to invest 37,500 crore to set up renewable energy and green hydrogen units over the next five years.

The projects spread over two phases would create employment opportunities for about 30,000 people, Bommai said.

So far, ReNew has implemented over 120 wind, solar and hydro power projects spread over nine states. The company generates about 12 GW of power through its plants.

The company is also diversifying its portfolio. Last month, it announced a joint venture company with state-run Indian Oil Corporation (IOC) and engineering and construction major Larsen & Toubro (L&T) to develop the nascent green hydrogen sector in India. In January, it said it will set up a joint venture with US-based Fluence to pr

Union minister of state for new and renewable energy, Bhagwant Khuba recently said that renewable energy projects worth nearly $197 billion are underway in the country.

Rituraj Baruah
Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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Updated: 26 May 2022, 06:15 AM IST
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