Norfund, the Norwegian government’s development finance vehicle, has invested US$100 million into Indian renewable energy company Ampin Energy Transition.
The investment, made through Norfund’s Climate Investment Fund, will support Ampin’s deployments of roughly 2GW of utility-scale and commercial and industrial (C&I) solar PV and wind power projects across India, alongside supportive energy storage developments.
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The money will also help to expand Ampin’s solar PV manufacturing operations in India, according to Norfund, which the firm is backwardly integrating from its main C&I and utility-scale deployment business. In April, the company opened a 1.3GW solar cell production facility in Odisha alongside fellow Indian solar firm Jupiter International.
Pinaki Bhattacharyya, founder, managing director, and chief executive officer of Ampin Energy Transition said the investment “reaffirms” Ampin’s business model and place in the Indian energy industry.
“Notably, [Ampin] is now the only energy transition company in India to attract leading investors from Europe, North America and Asia,” he said. “Besides capital, Norfund also brings to Ampin a range of strategic advantages, being a global leader in energy investments, making them an ideal partner for our long-term growth.”
Norfund framed its investment around the volatile global energy market and the impact of the ongoing war in Iran. It said the issues in the Strait of Hormuz were pushing up global power prices and incentivising some governments to bet on new cheap coal generation. It said that India had 43GW of new coal power under construction.
“At a time of high gas prices, the use of cheap coal is increasing in several places around the world. That is why it is crucial that countries in economic growth gain access to capital that makes investments in renewable energy possible,” said Åsmund Aukrust, Norway’s minister of development.
Bjørnar Baugerud, executive vice president for renewable energy and head of the Climate Investment Fund at Norfund, said: “If coal power wins, it will lock the world into enormous emissions. This can be avoided if countries such as India gain access to enough risk-willing capital for profitable investments in solar and wind energy, as the Climate Investment Fund is helping to provide through this investment.”
Norfund invests in developing countries, with a focus on climate, energy infrastructure and economic growth. It is owned by the Norwegian Ministry of Foreign Affairs. It has previously invested in projects alongside Norwegian independent power producer (IPP) Scatec in Colombia and Egypt.
