French energy firm Engie SA and Dubai-based private equity firm Abraaj Group may jointly invest around $1 billion to build a 1,000 megawatt (MW) wind power platform in India.
The strategy involves bidding for new contracts and making acquisitions. India’s wind sector is transitioning from a feed-in tariff regime to tariff-based competitive auctions.
Abraaj and Engie have identified a 1 GW pipeline of wind power projects in several key states. Foreign investments are crucial for India’s renewable energy industry as the lower cost of foreign capital and the size of the market has helped bring down tariffs. India plans to install 175,000MW of renewable energy by 2022. Of this, 100,000MW is to be solar and 60,000MW wind projects.
Also, the government plans to auction contracts for 20,000MW each of wind and solar power by December. India has an installed wind power capacity of 32.5 GW. The country needs to add 5-6 GW wind capacity every year to meet its 2022 target.