In April this year, Anand Prakash, MD (South-East Asia) of FE Clean Energy Asia talked about Clean Energy Investing in India.
He had then talked about the huge opportunities for IPP’s and developers. He talked about how returns in renewable energy was dependent on multiple factors with variable pricing including merchant power tariffs, CDM prices, REC certificate among others. He offered great insight in distinguishing between the returns from a typical thermal power project and those in renewable energy , the risk and the lack of knowledge that results in the challenge in evaluating that risk.
According to reports, FE Clean Energy Group , a Connecticut-based PE firm will be investing USD 40 million in NSL Renewable Power Private Limited (NRPPL), part of city(Hyderabad)- based NSL Group.
NRPPL will use the funds to meet equity commitments for its various wind, hydro and solar power projects being developed in various parts of the country, a statement from NSL said.
The company has about 162 MW of installed capacity in renewable energy, comprising of 150 MW of wind power (including a 50MW wind farm which is expected to be commissioned later this month) and two bio-mass plants of 6 MW each.
NRPPL is also constructing two medium scale hydro power projects (100 MW and 44 MW) and two small scale hydro power projects (5 MW and 6 MW) in Himachal Pradesh. The company has recently entered into solar power generation and is currently constructing a 20MW solar power project in Gujarat, which is expected to be commissioned by December 2011.
“This investment will enable the company to ramp up capacity and facilitate further fund raising to achieve our vision of being a 1000 MW Company by 2015 in the renewable energy space,” Prabhakar Rao, Chairman of NSL Group , said.
“NSL is one of the unique companies in the renewable energy space to own significant projects in the wind, hydro, biomass and solar sectors. NSL’s diversified portfolio is ideally positioned to grow in the next few years and FE Clean Energy is very excited to join NSL on its growth journey to become the largest diversified renewable energy company in India,” said Anand Prakash , Managing Director of FE Clean Energy Group.