The Abraaj Group and ENGIE to develop a Wind Power Platform in India
The Abraaj Group (Abraaj or the Group), a leading investor operating in growth markets, and ENGIE, a leading multinational utility company and the largest global independent power producer, announced today a partnership to build a wind platform in India (the ‘Platform’).
Together, Abraaj and ENGIE have identified a robust pipeline of wind power projects representing over 1 GW in several key states. By leveraging Abraaj’s clean energy sector expertise and ENGIE’s operational experience, the partnership will address a large and growing demand for clean energy from the Indian Government as well as businesses in the country.
The Indian renewable energy sector continues to grow rapidly, underpinned by an increasing demand for power. Power consumption in the country is expected to grow at 9% year-on-year until 2020. The Indian government’s target of 60 GW of wind power capacity by 2022 will require a near doubling of the current installed capacity of 32 GW over the next five years.
Government initiatives such as the Uday scheme (which has helped deleverage the balance sheets of distribution companies, the ‘Discoms’), the Green Corridor Initiative (which will help improve interstate connectivity), and the recently announced National Investment and Infrastructure Fund (which will provide long-term patient capital for infrastructure investments), together create a compelling investment opportunity for the private sector to help meet the significant demand for energy and more specifically renewable energy in the country.
Commenting on the partnership, Saad Zaman, Partner at The Abraaj Group, said, “The Indian renewables sector has seen strong growth in recent times and we expect demand for power across the country will continue to increase. In line with our commitment to addressing the Sustainable Development Goals, our partnership with ENGIE marks Abraaj’s second investment in the clean energy sector in India. Buoyed by a strong regulatory framework, the renewables sector is a significant long-term, sustainable investment opportunity for Abraaj. Wind power generation today is approaching grid parity and offers a competitive solution to lower average power pool prices. There is a real opportunity to enhance renewable energy generation in India and we are delighted to be working with ENGIE to deliver affordable and clean power to the country.”
Sébastien Arbola, CEO of ENGIE Middle East, South & Central Asia and Turkey, commented, “ENGIE is pleased to partner with Abraaj and to work closely with its teams to share our business practices and skills. Energy demand is growing tremendously in India, and ENGIE is investing in green energy sources as part of supporting the country with its sustainable development plans. Indeed, the Platform is fully in line with our commitment: provide clean and renewable energy for all.”