Dubai's Abraaj to invest in wind energy in India
October, 03rd 2017
Dubai-based private equity firm Abraaj Group and French gas and power company Engie, which manages US$11 billion in assets, have agreed to develop a wind power platform in India to leverage the Asian country’s ambitious renewable energy targets.
The two companies said that they have identified a pipeline of wind power projects accounting for 1 Gigawatts (GW) of power.
By the end of 2022, India has set a target of having 175 GW from installed power capacity from renewables, including 100 GW from solar power, 60 GW of wind power, 5 GW of small hydropower and 10 GW of biomass power.
By 2030 the Asian country aims to produce 40 percent of its cumulative electric power capacity from non-fossil fuel based energy resources.
India’s demand for power is growing at around 10 percent per year and is fueling investment in renewables. India is also a part of the climate accord, the Paris Agreement.
“We hope demand for power across the country will continue to rise as Indian renewable sector has seen strong growth in recent times,” said Saad Zaman, a partner at Abraaj. “Bolstered by a strong regulatory framework, the renewables sector is a significant long-term, sustainable investment opportunity for Abraaj. Wind power offers a competitive solution to lower average power pool prices.”
Abraaj, partnered in 2015 with India’s Aditya Birla Group to build a 1 GW scale solar energy platform in India. This year Abraaj acquired a majority stake in Jhimpir Power, a 50-megawatt wind power project in the Jhimpir wind corridor in Southeast Pakistan.