Renwable energy company Greenko Energy Holdings has signed definitive agreements for a primary equity funding of $ 495 million from an affiliate of GIC and an entity owned by the Abu Dhabi Investment Authority (ADIA).

It has secured Equity Commitment for two Storage Projects with total capacity of 2.4 GW (1.2GW in Pinnapuram and 1.2GW in Saundatti).

These projects are expected to be completed and operational in the year 2022 and will have overall capital outlay of $ 2 billion.

Greenko has also secured financial closure for the Pinnapuram Storage Project and are in advanced discussions for the Saundatti Project.

Post the investment, GIC will continue to remain as the majority shareholder of Greenko.

Based in Hyderabad, Greenko, is one of India’s leading renewable energy companies with operational capacity of over 4.2 GW (DC Capacity of 4.7 GW) diversified across Wind, Solar and Hydro projects.

Greenko’s investment in Storage Projects is the first step towards this direction and expected to deliver over 15 billion units of schedulable power generation.

“The proposed equity commitment from the existing shareholders shows Greenko’s impeccable track record in creating long-term value to all its stakeholders. Greenko’s innovative solutions have helped to place us at the forefront of the clean energy sector. Indian Energy markets are transitioning from deficit markets to demand-driven contracts, requiring reliable, flexible and cost competitive energy. Greenko is focussing in building Integrated Renewable Energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quanity and cost.” said Anil Chalamalasetty, Managing Director and Chief Executive Officer, Greenko.

Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, said “Greenko, as a leader in the Indian renewable energy sector, is well-positioned to execute the Integrated Renewable Energy projects. Its innovative use of hydro storage and renewable power will enable utilities to mitigate the intermittency issues of renewable power, facilitate the increased penetration of renewable power and reduce the country’s reliance on conventional thermal power over time. As a long-term investor, we are very pleased to be supporting Greenko’s next phase of growth, which will enhance clean energy offerings and benefit communities in India in the long run.”

“Greenko has achieved 4.2 GW of operational portfolio and over 7 GW under construction capacity and is well funded to grow into a multi gigawatt portfolio over the next few years,” Mahesh Kolli, President & Joint Managing Director of Greenko said.