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ReNew Energy Global (ReNew) said on Monday that it has signed a Memorandum of Understanding (MoU) with the Asian Development Bank (ADB) to collaborate on climate change mitigation and adaptation projects. The MoU covers projects with investment value of over $5.3 billion between 2023 and 2028.
“The MoU was signed at COP28, in Dubai on Sunday, by ReNew Chairman and CEO Sumant Sinha and ADB Director General Private Sector Operations Department Suzanne Gaboury,” the NASDAQ-listed company said.
The MOU identified potential investments in renewable energy projects, manufacturing, carbon offset projects, and green hydrogen, aimed at jointly supporting sustainable energy transition.
ReNew claims that the MoU is a first of its kind in the Indian RE sector and is expected to draw interest from additional international investors to participate in financing long-term debt for significant Renewable Energy infrastructure projects.
In addition, it will help ADB achieve its funding ambition of $100 billion in green energy projects by 2030.
Kailash Vaswani, CFO of ReNew Energy Global, told businessline that the funding would be applicable for projects under planning as well as those in the future.
“The projects for which we will start construction soon, we will mandate ADB to arrange the financing. There are some projects which will come up in future and for that again there will be preferred access. It is an MoU. So, in that sense, they (ADB) will do their whole appraisal before releasing the funds. But, it gives us preferred access to financing from a large BFI (Banking and Financial Institution). So, it sort of puts us in front of the queue of the capital which they will invest in India,” he added.
On the MoU with ADB, Sinha said, “Significant financing is needed to reach global climate targets and this agreement helps secure the capital needed. We look forward to collaborating with Asian Development Bank over the coming years to meet India’s target of achieving 500 GW of renewable capacity by 2030.”
With a portfolio of almost 14 gigawatts (GW) of clean energy capacity, ReNew’sprojects with a capacity of 8 GW have been commissioned and 6 GW are under execution.
Besides, the company also won projects of 3GW capacity in FY24 so far, for which the power purchase agreements (PPAs) are in the process of being signed.
The company has already invested around $8 billion in the clean energy space and the MoU will enable ReNew to raise further funding for renewable energy projects.
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