IndiGrid, India’s first and largest listed power sector infrastructure investment trust (InvIT), announced this week that it has partnered with British International Investment (BII), UK’s development finance institution and impact investor, the Norwegian Climate Investment Fund, managed by Norfund, and Techno Electric and Engineering Co. Ltd (Techno) for development of IndiGrid’s greenfield interstate transmission system (ISTS) projects.
During FY24, IndiGrid operationalized its first greenfield ISTS project, Kallam Transmission Ltd, and won five additional projects, across ISTS and battery energy storage system (BESS), with a capex outlay of around INR 2,000 crore to be deployed over the next 12-24 months.
Under this partnership, BII and Norfund will invest in IndiGrid’s three ISTS projects won last year and currently under-construction: Ishanagar Power Transmission Ltd (IPTL), Dhule Power Transmission Ltd (DPTL), and Kallam Transco Ltd (KTCO). These projects are expected to support evacuation of 6 GW of renewable energy in the states of Madhya Pradesh and Maharashtra.
Additionally, Techno will co-develop the IPTL and DPTL projects. It will invest minority capital and will also be responsible for the complete execution of the projects on a lump sum turnkey basis. IndiGrid will be acquiring entire stake in these projects once they are operational and revenue generating.
IndiGrid owns 41 power projects, consisting of 49 transmission lines with more than 8,700 ckm length, 15 substations with 22,550 MVA transformation capacity, and 855 MW AC (1.1 GWp) of solar generation capacity. It has assets under management (AUM) of over INR 293 billion ($3.5 billion). The investment manager of IndiGrid is wholly owned by KKR.
British International Investment is the UK’s development finance institution and impact investor. Between 2022 and 2026, at least 30% of BII’s total new commitments by value will be in climate finance.
Norfund is a Norwegian Investment Fund for developing countries. It is owned and funded by the Norwegian Government. Norfund’s committed portfolio totals $3.6 billion in Sub-Saharan Africa, South/Southeast Asia, and Latin America. Norfund also manages the Norwegian Climate Investment Fund that aims to contribute to reducing or avoiding greenhouse gas emissions by investing in renewable energy in developing countries with large emissions from coal and other fossil fuel production.
Techno Electric and Engineering, founded in 1963, provides engineering, procurement, and construction (EPC) services across the power generation, transmission, and distribution sectors. In addition to its core operations, Techno is also involved in the development and implementation of smart grid technologies, energy storage solutions, and other advanced technologies that are shaping the future of the energy sector in India. It has a market cap of over $2 billion and order book valued at around $1.2 billion.
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