, a listed power sector infrastructure investment trust (InvIT), has extended its partnership with British International Investment (BII), the UK’s development finance institution and impact investor, and the Norwegian Climate Investment Fund, managed by Norfund, to form a new platform, EnerGrid.
The platform will focus on bidding and developing greenfield transmission and standalone Battery Energy Storage System (BESS) projects in India, Ingrid said in a statement.
According to the latest estimates released by Central Electricity Authority (CEA), India will require an additional 170,000 circuit kilometers of transmission lines and 47 GW of BESS capacity over the next eight years to facilitate evacuation of its growing generation capacity.
Earlier this fiscal, IndiGrid announced the first phase of this partnership, under which BII and Norfund (through KNI India AS, Norfund’s joint venture with KLP, Norway’s largest pension company) invested in three of IndiGrid’s existing greenfield transmission projects.
IndiGrid, BII, and Norfund, alongside KLP through KNI India, have committed approximately $300 million for the EnerGrid platform, with each partner contributing around $100 million. The platform will use the capital to target projects worth approximately $1.2 billion over the next few years, the company said.
“Indian power sector is going through a metamorphosis to facilitate achievement of the country’s net zero goals. The transmission sector is witnessing a bidding pipeline like never before which we are looking to leverage to drive growth,” said Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid.
“This partnership will ensure that while IndiGrid continues to look for synergistic brownfield projects to acquire, we can also meaningfully create a growth pipeline for us in the under-construction space. We are delighted to have partnered with reputed names like BII and Norfund as they will lend their credibility to the new platform while guiding it in implementation of best-in-class ESG and corporate governance practices,” he added
“Norfund recognises the crucial role that investments in transmission infrastructure play in achieving the Indian government’s ambitious renewable energy targets. Unlocking capital to accelerate the energy transition is a central theme at COP29 in Baku, and we are delighted to announce this new partnership, which exemplifies our commitment to mobilizing the necessary capital,” added Tellef Thorleifsson, CEO of Norfund.
