Welspun Renewables receives $617m to achieve wind power target

Welspun Renewables, India’s renewable energy generator, has received $617m of more funding to help meet its 2022 wind power target.

The investment includes $405m debt, $165 m equity and $47m in the form of line of credit.

The details of investors putting in the $165m equity have not been disclosed.

Welspun Renewables vice chairman Vineet Mittal said, "WREPL’s power plants are among the highest generating projects in the country and have been built ahead of committed timelines – thanks to our superior EPC capabilities. Being the leaders in this space, we have been setting benchmarks for the entire industry to follow. These deals continue to prove that renewable energy sector is a preferred investment choice and global players are willing to commit to help grow the industry. Just last year, two of the biggest international names – The Asian Development Bank and General Electric made significant investments in our operations. We are grateful for the support".

The existing investors of Welspun Renewables include General Electric Co’s unit GE Energy Financial Services and the Asian Development Bank.

In 2014, the Asian Development Bank also contributed $50m equity capital in the organisation without disclosing any stake.
At present, the firm’s solar and wind projects are spread across eight states in the country and its plans to set up another 5GW capacity where 1GW is likely to be started this fiscal.

The renewable firm has generated clean energy of over 1.375 billion units and mitigated about 1.2 million tn of CO2 emissions so far.
At present the country needs over $200b to complete its 100GW of solar power and 60,000MW of wind power target by the end of 2022.

The developers are facing affordability issues with inadequate funds. Also, banks have been reluctant in lending and charging high interest rates for renewable projects.