Indian renewable power developer ReNew Energy Global has signed a memorandum of understanding with the Asian Development Bank (ADB) to raise US$5.3 billion in funding for new clean energy projects until 2028.
The deal was signed at the COP28 conference currently underway in Dubai, in the UAE. Over the weekend, 118 countries signed pledges to treble global installed renewable capacity to 11TW by 2030, and the raising of additional funding for new solar projects will help meet this target.
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While ReNew Energy did not announce which projects or developments would receive the funding over the next five years, it already boasts a sizeable solar portfolio in India, with 4.1GW of commissioned and committed capacity in place since it entered the sector in 2013.
The company notes that it has already invested around US$8 billion into the clean energy sector, and the latest funding will help the developer reach its goal of investing US$100 billion into renewable power by the end of the decade.
“Today’s agreement marks an exciting time for ReNew,” said ReNew founder, chairman and CEO Sumant Sinha, who signed the memorandum with ADB director general of private sector operations Suzanne Gaboury. “Significant financing is needed to reach global climate targets and this agreement helps secure the capital needed.
“We look forward to collaborating with ADB over the coming years to meet India’s target of achieving 500GW of renewable capacity by 2030,” added Sinha.
The news follows ReNew Energy’s launch of a joint venture with Malaysia’s Gentari to develop 5GW of new renewable energy capacity in India. The company has also set aside transmission capacity on the Indian power grid for 3.1GW of upcoming projects, for which ReNew Energy has received permission. The developer is waiting to complete power purchase agreements before starting construction on these projects, and its work with local power grids could be a cause for optimism about the projects’ feasibility and eventual deployment.
However, figures from JMK Research show that, in the first three quarters of this year, new solar capacity additions in India were 25% lower than in the same period in 2022, raising questions as to the long-term health of the Indian solar sector.