Private equity renewable energy investments in India
India is anticipated to grow its total energy consumption and CO2 emissions by more than any other country over the next two decades. India will have to attract around $400 billion in financing to realize its 500 GW target of renewable energy by 2030. Given complex renewable energy sector risks, rap...
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Elsevier
2025-01-01
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024171290 |
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| author | Hemi H. Gandhi Bram Hoex Brett Jason Hallam |
| author_facet | Hemi H. Gandhi Bram Hoex Brett Jason Hallam |
| author_sort | Hemi H. Gandhi |
| collection | DOAJ |
| description | India is anticipated to grow its total energy consumption and CO2 emissions by more than any other country over the next two decades. India will have to attract around $400 billion in financing to realize its 500 GW target of renewable energy by 2030. Given complex renewable energy sector risks, rapidly scaling-up risk-friendly private equity financing will be critical to achieve India's target. This research seeks to answer questions regarding the motivation, perceptions, strategies, and investment behavior of private equity investors in the Indian renewable energy sector. The answers to these questions presented herein have been distilled from primary research interviews with 40 executive-level sector practitioners and literature analysis. This research finds that global-macro forces and sector-specific appeal are attracting varied investors to the sector. These investors primarily deploy capital in existing developer platforms, creating control developer platforms, and Infrastructure Investment Trusts. Critical investment criteria and value creation strategies of these investors are comprehensively discussed. Emerging investment opportunities to create new renewable energy sector value by partnering with companies across the power sector value chain are also presented. This research concludes that despite significant sector risks, investors remain confident they can achieve outsized risk-adjusted returns relative to most other global infrastructure assets. This optimism stems from the confidence of investors in their own ability to manage risk-return dynamics through judicious investment selection and management strategies, the sector's uniquely large demand growth and market size, and the Indian central government's perceived strong commitment to finding creative solutions to chronic sector issues. Lessons from the investment insights, themes and factor analyses discussed herein can be drawn upon in evaluating renewable energy investments and policymaking worldwide. |
| format | Article |
| id | doaj-art-474463d9b0c749b4a0555adae5bb5e11 |
| institution | Kabale University |
| issn | 2405-8440 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj-art-474463d9b0c749b4a0555adae5bb5e112025-01-17T04:50:08ZengElsevierHeliyon2405-84402025-01-01111e41098Private equity renewable energy investments in IndiaHemi H. Gandhi0Bram Hoex1Brett Jason Hallam2School of Photovoltaic and Renewable Energy Engineering, University of New South Wales, Sydney, NSW, 2052, Australia; Harvard John A. Paulson School of Engineering and Applied Sciences Cambridge, MA, 02138, USA; Creative Synergies Group, Okemos, MI, 48864, USA; Corresponding author. School of Photovoltaic and Renewable Energy Engineering, University of New South Wales, Sydney, NSW, 2052, Australia.School of Photovoltaic and Renewable Energy Engineering, University of New South Wales, Sydney, NSW, 2052, AustraliaSchool of Photovoltaic and Renewable Energy Engineering, University of New South Wales, Sydney, NSW, 2052, Australia; Corresponding author.India is anticipated to grow its total energy consumption and CO2 emissions by more than any other country over the next two decades. India will have to attract around $400 billion in financing to realize its 500 GW target of renewable energy by 2030. Given complex renewable energy sector risks, rapidly scaling-up risk-friendly private equity financing will be critical to achieve India's target. This research seeks to answer questions regarding the motivation, perceptions, strategies, and investment behavior of private equity investors in the Indian renewable energy sector. The answers to these questions presented herein have been distilled from primary research interviews with 40 executive-level sector practitioners and literature analysis. This research finds that global-macro forces and sector-specific appeal are attracting varied investors to the sector. These investors primarily deploy capital in existing developer platforms, creating control developer platforms, and Infrastructure Investment Trusts. Critical investment criteria and value creation strategies of these investors are comprehensively discussed. Emerging investment opportunities to create new renewable energy sector value by partnering with companies across the power sector value chain are also presented. This research concludes that despite significant sector risks, investors remain confident they can achieve outsized risk-adjusted returns relative to most other global infrastructure assets. This optimism stems from the confidence of investors in their own ability to manage risk-return dynamics through judicious investment selection and management strategies, the sector's uniquely large demand growth and market size, and the Indian central government's perceived strong commitment to finding creative solutions to chronic sector issues. Lessons from the investment insights, themes and factor analyses discussed herein can be drawn upon in evaluating renewable energy investments and policymaking worldwide.http://www.sciencedirect.com/science/article/pii/S2405844024171290IndiaRenewable energyPrivate equityInvestment strategyInvITEmerging markets |
| spellingShingle | Hemi H. Gandhi Bram Hoex Brett Jason Hallam Private equity renewable energy investments in India Heliyon India Renewable energy Private equity Investment strategy InvIT Emerging markets |
| title | Private equity renewable energy investments in India |
| title_full | Private equity renewable energy investments in India |
| title_fullStr | Private equity renewable energy investments in India |
| title_full_unstemmed | Private equity renewable energy investments in India |
| title_short | Private equity renewable energy investments in India |
| title_sort | private equity renewable energy investments in india |
| topic | India Renewable energy Private equity Investment strategy InvIT Emerging markets |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024171290 |
| work_keys_str_mv | AT hemihgandhi privateequityrenewableenergyinvestmentsinindia AT bramhoex privateequityrenewableenergyinvestmentsinindia AT brettjasonhallam privateequityrenewableenergyinvestmentsinindia |