7 May 2025
Mint
British International Investment (BII) has invested $100 million
in the solar module and cell manufacturing subsidiary of Nasdaq-listed ReNew
Energy Global Plc.
The UK government entity will acquire a 10% stake in ReNew
Photovoltaics Ltd, valuing the subsidiary at $1 billion, according to a filing
with the Securities and Exchange Commission.
The investment will be deployed towards adding 4 gigawatts of
solar module and cell manufacturing capacity. ReNew has 6.4 GW of module
capacity and 2.5 GW of cell capacity. The cumulative capacity of ReNew will be
about 13 GW following the capacity addition.
BII recently sold its stake in National Investment and
Infrastructure Fund-backed Ayana Renewable Power Pvt Ltd to ONGC NTPC Green
Private Ltd in a ₹6,600
crore equity deal. Ayana manages a 4.1 GW renewable energy portfolio across
Indian states and delivers solar, wind, hybrid, storage and round-the-clock
renewable solutions.
ReNew said in a statement on 6 May that this is BII’s first
investment in solar manufacturing in India.
“This partnership underscores our commitment to delivering high
quality, top-tier products,” said Sumant Sinha, founder and chairman of ReNew.
“Venturing into manufacturing was a strategic decision aimed at securing our
supply chain, particularly as India advances its objective of indigenising the
solar supply chain… our goal was to partner with a like-minded, long-term
partner in the manufacturing sector."
Sally Taylor, minister counsellor for climate, science and tech at
the British High Commission, said the investment in ReNew’s subsidiary will
diversify the supply of panels and build the strong partnership between the UK
and India on clean energy.
"The UK Government is pressing ahead with
our own clean energy transition, where the private sector is playing a key
role, and we are keen to work with India and other countries showing domestic
and international leadership on tackling climate change," Taylor said.
Shilpa Kumar, MD and head of India at BII noted
that enhancing India's capacity in solar manufacturing will not only boost
clean energy generation but also reduce the country’s dependency on imports,
promote sustainable industrialisation and create jobs.
"It underscores BII’s unwavering commitment to making
investments that drive sustainable development and climate resilience in
India," BII's India head said.
Established in 2021, ReNew Photovoltaics operates a 6.4 GW solar
PV module facility in Jaipur and a 2.5 GW solar cell facility in Dholera,
Gujarat. BII’s investment will be primarily utilised to construct a 4 GW cell
facility in Dholera. The expansion is expected to create over 2,000 jobs, the
company said in the statement.
ReNew Photovoltaics' customers include state-run NTPC and Shakti
Pumps.
In an interview to Mint in September 2024, Sinha said ReNew Energy
Global is looking at monetising its solar components manufacturing business and
may approach private equity firms to raise funds.
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