IFC, a member of the World Bank Group, is providing $5 million to an independent green energy producer NSL Renewable Power through compulsorily convertible debentures to support the development of wind and hydropower projects, and expand access to clean energy.
IFC’s investment will help NSL Renewable Power double its power generation capacity over the next 18 months. Starting 2015, the project is expected to avoid 300,000 tons of CO2 emissions per year. This second round of financing follows a $20 million equity investment that IFC had made in the company in 2011.
“IFC’s financial support and expertise in the renewable energy sector will encourage other investors to invest in NSL Renewable Power,” said M Prabhakar Rao, Chairman, NSL Group. “IFC’s strategic partnership will help the company transition from being a medium sized market participant to a domestic market leader and, over time, become an investor and developer in other emerging markets.”
NSL Renewable Power develops and operates renewable energy projects using biomass, wind, hydro, and solar technologies. The company’s operational capacity is around 185 MW across India.