UK International Investment invests $10 billion to renew 10% of its solar module manufacturing business
New Delhi: UK International Investment (BII) has invested US$100 million in NASDAQ-listed Renew Energy Global Plc's solar module and cell manufacturing subsidiary.
According to the Securities and Exchange Commission filing, the UK government entity will acquire a 10% stake in Photovoltaics Ltd, evaluating the subsidiary at $1 billion.
The investment will be used to increase the capacity of 4 GW of solar modules and battery manufacturing. Updated with 6.4 GW of module capacity and 2.5 GW of battery capacity. After adding capacity, the cumulative capacity of the updated will be approximately 13 gw.
BII recently sold its national investment and infrastructure-backed Ayana Reenwable Power Pvt Ltd to ONGC NTPC Green Private Ltd ₹66 billion equity transactions. Ayana manages a 4.1 GW renewable energy portfolio in various states in India and provides solar, wind, hybrid, storage and circular renewable solutions.
Renew said in a May 6 statement that this is BII's first investment in the solar manufacturing industry in India.
“This partnership emphasizes our commitment to delivering top-quality products at the top of the list,” said Sumant Sinha, Founder and Chairman of Renew. “Entering into manufacturing is a strategic decision to ensure our supply chain, especially when India’s goal to promote its localized solar supply chain…our goal is to work with like-minded long-term partners in manufacturing.”
UK High Commission Climate, Science and Technology Minister Sally Taylor said the investment in renewal subsidiaries would diversify the group’s supply and build a strong partnership between the UK and India on clean energy.
“The UK government is urging our own clean energy transition, where the private sector plays a key role, and we are keen to work with domestic and international leaders in India and other countries to address climate change,” Taylor said.
Expansion unit output
Shilpa Kumar, MD and head of India at BII, noted that strengthening India’s capacity in solar manufacturing will not only enhance the generation of clean energy, but will also reduce the country’s dependence on imports, promote sustainable industrialization and create jobs.
“It highlights BII's strong commitment to developing investments that drive sustainable development and climate resilience in India,” said BII's head of India.
Founded 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 used to build 4 GW cell facilities in Dholera. The company said in a statement that the expansion is expected to create more than 2,000 jobs.
Customers renewing Photovoltaics include state-operated NTPC and Shakti pumps.
During the interview Mint Sinha said in September 2024 that Renew Energy Global is focusing on its solar module manufacturing business and may raise funds with private equity firms.
