Renewable Energy Finance: Investments in India’s C&I-focussed renewables sector reach ~$800mn in YTD 2023, exceeding last year’s total

published on 03 May 2023

The surge in investments in renewable energy developers that are targeting commercial and industrial (C&I) customers is driven primarily by the increasing adoption of on-site and open-access systems. The adoption is believed to be the result of companies’ efforts to curb power bills as the country’s industrial sector expands to keep pace with economic development. Adoption of on-site energy production coupled with battery storage systems can reduce the cost of electricity by 175%, to $0.04/KWh. In addition, consistent declines in installation costs - which currently stand at $0.4-0.5mn/MW - have lowered the overall price of these systems, thereby incentivizing their adoption.

Recent deal: KKR has invested $250mn in Indian C&I solutions provider Serentica Renewables, following up on its previous $400mn investment in the company in Nov’22. The capital will support Serentica’s target to achieve 4 GW of installed renewable energy capacity across the country, aiding the delivery of round-the-clock (RtC) to large-scale industrial customers.

Other significant transactions: Brookfield’s $530mn equity investment in CleanMax Enviro in Apr’23 marks the largest C&I-focussed renewables investment in the country, in 2023. CleanMax has an operating portfolio of 1.6 GW and follows a strategy similar to that of Serentica Renewables, with a focus on serving a wide range of C&I customers in India including Ultratech, Tata Motors, and Sansera.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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