The Aditya Birla Group has tied up with the Abraaj Group, a leading Dubai-based investor operating in global growth markets, to build one gigawatt scale renewable energy platform focused on developing solar power plants in India. Abraaj will invest in the platform through one of its funds and the Aditya Birla Group will invest through Aditya Birla Nuvo Limited.
The new solar power platform will bid for projects tendered at national and state auctions, with the intent to develop and operate utility-scale solar power plants that can provide clean and cost-effective electricity to the national grid across several key states. "The gap in energy infrastructure in growth markets translates into a long-term and sustainable investment opportunity. Renewable energy is set for explosive growth thanks to technological advances, favorable policies and pricing structures that make it a competitive alternative to conventional power generation," said Sev Vettivetpillai, partner and global head of Abraaj's Thematic Funds Business.
Dev Bhattacharya, Business Head, Group Corporate Strategy, Solar Power & E-Commerce, Aditya Birla Group, added, "Aditya Birla Group supports the Government of India's initiative for a greater share of renewables in the energy mix, essential for sustained economic and industrial growth.
This cooperation will give a fillip to Aditya Birla Group's renewable energy initiatives and contribute to reducing the carbon footprint of India as a whole."
The Abraaj Group has made 10 investment totalling to some $1 billion in global growth markets. Dubai-based Abraaj is a private equity investor investing in Africa, Asia, Latin America, the Middle East, and Turkey. The Group currently manages $9 billion across regional, sector and country-specific funds.