IndiGrid , India’s leading power sector infrastructure investment trust (InvIT), has announced an enhanced partnership with British International Investment (BII), the UK’s development finance institution, and the Norwegian Climate Investment Fund, managed by Norfund. The collaboration marks the launch of EnerGrid, a new platform that will focus on bidding and developing greenfield transmission projects and standalone Battery Energy Storage Systems (BESS) in India.
As India experiences a surge in power demand and shifts towards renewable energy, the country’s transmission sector is poised for significant growth. According to estimates from the Central Electricity Authority (CEA), India will need an additional 170,000 circuit kilometers of transmission lines and 47 GW of BESS capacity over the next eight years to support its expanding generation capacity.
The partnership follows a previous agreement between IndiGrid, BII, and Norfund, which saw the investment in three greenfield transmission projects earlier this fiscal year. Under the new agreement, the partners will jointly invest approximately USD 300 million into EnerGrid, with each contributing around USD 100 million. This funding is set to support projects valued at an estimated USD 1.2 billion in the coming years. Upon completion and commencement of operations, these projects will be acquired by IndiGrid at a pre-agreed enterprise value.
Harsh Shah, CEO and Whole Time Director of IndiGrid, commented on the strategic partnership, “The Indian power sector is undergoing a transformation to achieve the country’s net-zero goals. The transmission sector is experiencing unprecedented bidding momentum, and this collaboration will help us leverage these opportunities to drive sustainable growth. Our partnership with BII and Norfund will strengthen our platform with global expertise and capital, ensuring a robust pipeline of greenfield projects.”
The collaboration is especially significant in the context of COP29 in Baku, where it was officially announced. Tellef Thorleifsson, CEO of Norfund, emphasized the importance of investments in transmission infrastructure for India’s renewable energy targets, noting, “This partnership aligns with Norfund’s commitment to unlocking capital to accelerate the energy transition, a key theme at COP29.”
Srini Nagarajan, MD and Head of Asia at British International Investment, highlighted the role of the partnership in helping India meet its ambitious net-zero targets, saying, “EnerGrid exemplifies BII’s pioneering approach to mobilizing private capital at scale. It will play a critical role in facilitating the growth of India’s renewable energy infrastructure and energy storage capacity, helping the country transition to a greener future.”
Through this partnership, EnerGrid aims to support India’s energy transition by attracting private investment into key infrastructure projects, ensuring the development of efficient and sustainable transmission systems and energy storage solutions.
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