Enel Green Power India (EGP India), the subsidiary of Enel Green Power and Norfund, the Norwegian Investment Fund for developing countries, has signed a long-term agreement to finance, build and operate new renewable energy projects in India.
Under this collaborative investment framework agreement, EGP India is responsible for the development and construction of each project and Norfund will invest in these projects once a specific milestone in completion is reached. This will make Norfund a joint-equity partner with EGP India in these projects.
Antonio Cammisecra, CEO of Enel Green Power, said:
By joining forces with an important partner such as Norfund, which shares our commitment towards sustainability and decarbonization, we will leverage on our technical expertise to harness the significant renewable growth potential of India while contributing to the achievement of the country’s sustainable energy targets.”
Both companies recognise the renewable energy potential of India and through these projects aim to help India achieve its ambitious green energy goals.
India’s government is committed to achieving 100 GW of solar energy and 60 GW of wind energy by 2022. This is an increase of approximately 35 GW of solar energy and approximately 38 GW of wind energy as of July 2020.
Tellef Thorleifsson, CEO of Norfund, said: “For Norfund, the partnership represents an opportunity to play a role in providing much needed clean energy in an important market together with a world-class industrial partner.
“India has ambitious targets to increase the penetration of renewables, and there is a great need for more capital combined with technical expertise to realize them.”
About EGP India
EGP India already owns and operates 172 MW of wind energy capacity, which produces approximately 320 GWh annually in Gujarat and Maharashtra, India.
The company was recently awarded the right to sign a 25-year energy supply contract for a 420 MW solar project in Rajasthan. This will be EGP India’s first solar plant in the country, under the 2 GW Ninth Tranche of the national solar tender issued by the government company, Solar Energy Corporation of India Limited.
Enel Green Power, within the Enel Group, has a managed capacity of over 46 GW across a generation mix that includes wind, solar, geothermal, and hydropower. The company is dedicated to the development and operation of renewables across the world, with projects in Europe, the Americas, Asia, Africa, and Oceania.
Norfund is on a mission to help developing countries utilise the abundant renewable energy sources available to them through renewable energy initiatives and improve the quality of life for people in developing countries.
The organisation aims to achieve these goals by investing in businesses that drive sustainable development and clean energy generation in developing countries, which in turn creates jobs, fuelling economic growth in developing countries.
EGP India and Norfund are setting an example of effective unity between investment organisations and renewable energy companies to fight the threat of climate change, whilst also helping developing countries.