BII to invest $100 million in ReNew's solar parts maker

Mumbai:British International Investment (BII) will invest Rs 870 crore ($100 million) in ReNew Photovoltaics for a 10% stake, marking its first investment in solar component manufacturing in India. The remaining 90% will stay with the Nasdaq-listed ReNew Energy Global, founded by Sumant Sinha. BII's investment values the solar component manufacturer at $1 billion and grants it one seat on the company's board.The deal follows BII's exit from Ayana Renewable in Feb this year. BII leadership had said that India makes up about 22% of its balance sheet, and moving forward, it plans to increase investments in climate and infrastructure projects. The funds from BII will help ReNew Photovoltaics grow its capacity to 13 GW from the current 9 GW. The company plans to construct a solar cell factory in Dholera, Gujarat. ReNew Photovoltaics, established in 2021, currently has a solar cell manufacturing capacity of 2.5 GW and a solar module manufacturing capacity of 6.5 GW (solar cells are used to make solar modules). Its customers include NTPC and Shakti Pumps. Foreign investors have shown great interest in renewable energy. Mubadala and BlackRock invested in Tata Power's clean energy unit, while IHC put money in Adani Green Energy.