The Climate Investment Fund, managed by Norfund, is investing up to 100 million dollars in the Indian renewable energy company AMPIN Energy Transition. The capital will help finance around 2 gigawatts of new solar and wind power backed by energy storage in India.
Read the press release from AMPIN here.
“At a time of high gas prices, the use of cheap coal is increasing in several places around the world. That is why it is crucial that countries in economic growth gain access to capital that makes investments in renewable energy possible. This investment shows that climate funds attract private capital while also contributing to real emissions reductions,”
Åsmund Aukrust
Minister of Development
AMPIN currently operates 2.5 GWp of renewable energy capacity out of portfolio of 6.3 GWp, alongside solar manufacturing capacity of 1.3 GW for cells and 1.9 GW for modules. With the help of the investment from the Climate Investment Fund, the company will build an additional 2.0 GWp, and is targeting to reach 10 GWp of installed capacity by 2030 equivalent to a quarter of Norway’s installed power capacity.
“Through this equity investment, the Climate Investment Fund will help finance Ampin’s share of new solar, wind and hybrid projects, and support the company’s continued push into its own manufacturing of solar panels,”
Bjørnar Baugerud
EVP Renewable Energy and head of the Climate Investment Fund at Norfund
The company, which began as a supplier of energy directly to businesses (so-called C&I), has become a developer of large-scale solar and wind power for the Indian grid as well. AMPIN is developing solutions that can guarantee round-the-clock delivery of renewable electricity through combinations of solar power, wind power and batteries, and the company is also investing in its own solar panel and battery production. It thus provides a complete access to the entire renewable energy transition market in India.
“This equity investment from Norfund reaffirms AMPIN’s unique business model powering energy transition that is serving for C&I and Utility customers and backward integration into manufacturing that creates the best risk adjusted return strategy. Norfund also brings strategic advantages being a global leader in energy investments, making them an ideal partner for our long-term growth,” says Pinaki Bhattacharyya, Founder, MD, and CEO of AMPIN Energy Transition.
Norfund’s investment of 100 million dollars is expected to help mobilise a further up to 700 million dollars in private capital, in a mix of equity and loans.
High gas prices force a choice between coal and renewable energy
The closure of the Strait of Hormuz has led to a sharp rise in gas prices and shortfalls in gas supply. In India, emissions from the power sector have risen by 2.3% this year, following a 2.2% decline over the same period last year, according to a new analysis from Carbon Brief. India has 43 GW of new coal power under construction.
“If coal power wins, it will lock the world into enormous emissions. This can be avoided if countries such as India gain access to enough risk-willing capital for profitable investments in solar and wind energy, as the Climate Investment Fund is helping to provide through this investment,” says Baugerud.
Will avoid emissions equivalent to all Norwegian private cars
The investment in AMPIN will help finance around 2 GW of new renewable capacity by 2028. Norfund estimates that the projects will help avoid around 3.1 million tonnes of CO2 equivalents annually once operational. That alone is almost equivalent to the emissions from all Norwegian private passenger cars combined (3.3 million tonnes).
“Being able to contribute to avoided emissions on this scale through profitable investments makes the Climate Investment Fund a highly effective climate tool,” says Baugerud.
Last year, the Climate Investment Fund invested in projects that will annually avoid 22.7 million tonnes of CO2e – equivalent to half of Norway’s annual emissions. At the same time, the fund has delivered an average annual return of 9.7% in Norwegian kroner (13.3% in investment currency).
About AMPIN Energy Transition
AMPIN Energy Transition is India’s leading renewable energy transition company with a total portfolio of 6.3 GWp + 5.5 GWh and presence across 23 states & UTs in the country. Headquartered in New Delhi with regional offices in Mumbai, Bengaluru, and Kolkata, AMPIN Energy Transition has a balanced portfolio of renewable energy assets using a blend of solar, wind, and storage to provide green power to Utility and Commercial & Industrial customers. It has the unique capability to provide renewable energy for 100% energy transition as well as to reduce the operating costs of marquee customers across 10 diverse sectors such as Pharmaceuticals, Automobiles, Cement, Steel, Heavy Engineering, Infrastructure, FMCG, Educational Institutions, IT & Data Centres, Utilities, and Government bodies. Beyond its core renewable power generation business AMPIN has built a portfolio of Energy Transition Enablers that enhance its competitive edge by driving strategic initiatives in energy trading, solar cell and module manufacturing, green hydrogen, and energy storage, allowing it to become one of India’s leading energy transition players. AMPIN is driven by an industry-leading team and backed by leading institutional investors from Europe, Asia, and North America.
