BII, Norfund and IndiGrid form $300 million greenfield transmission and BESS project business

New Delhi: IndiGrid has partnered with British development finance institution and impact investor British International Investments (BII) and the Norwegian Climate Investment Fund managed by Norfund to launch new business in the green energy sector.

The platform, called Energid, will focus on bidding and developing greenfield transmission and independent battery energy storage system (BESS) projects in India, KKR-backed Mumbai Transmission Infrastructure Investment Trust (InvIT) IndiGrid said in a statement. .

“Through the EnerGrid platform, IndiGrid, BII and Norfund and KLP through KNI India AS have committed approximately $300 million, with each partner contributing approximately $100 million,” the statement said.

The funding will allow EnergGrid to target approximately $1.2 billion worth of projects over the next few years. Upon commencement of commercial operations, the projects will be fully acquired by IndiGrid at a pre-agreed enterprise value.

Avendus Capital is IndiGrid’s advisor on this transaction.

July 10, Mint According to reports, investment companies including Norwegian state-owned Norfund and BII are considering taking a stake in IndiGrid’s new transmission business, with the equity value expected to be approximately US$250 million.

Earlier this year, IndiGrid announced the first phase of the partnership, under which BII and Norfund (through KNI India AS, Norfund’s joint venture with KLP, Norway’s largest pension company) invested in IndiGrid’s existing Three greenfield transmission projects.

BII and Norfund will provide access to funding from global development finance institutions and Norwegian private pension funds, the statement said.

Commenting on the deal signed during COP29, IndiGrid CEO and Whole Time Director Harsh Shah said: “This partnership will ensure that while IndiGrid continues to look for synergistic brownfield projects to acquire, we can also meaningfully Creating a pipeline for growth in areas we are building.”

Norfund CEO Tellef Thorleifsson noted that the fund recognizes the critical role that investment in transmission infrastructure plays in achieving India’s ambitious renewable energy goals.

Norfund CEO said: “Unleashing capital to accelerate the energy transition is a central theme at COP29 in Baku and we are delighted to announce this new partnership, which demonstrates our commitment to mobilizing necessary capital.”

Srini Nagarajan, managing director and head of Asia at BII, said India will need significant investment to achieve its ambitious net-zero emissions targets, particularly in developing the country’s transmission infrastructure and energy storage capabilities.

Nagarajan said: “This partnership will help attract more private capital into critical areas, thereby promoting the growth of renewable energy supply, sustainably meeting the growing energy demand and accelerating India’s journey towards a green future. process.”