CIP enters partnership for 1.8GW renewables projects in India

Copenhagen Infrastructure Partners, through its New Markets Fund I (CI NMF I), has entered into a framework agreement with Indian developer Viviid Renewables to develop more than 1.8GW of renewable energy projects in India.

The partners will start by developing two onshore wind projects with a combined capacity of more than 500MW, after which CI NMF funds will be used to develop more projects from Viviid's pipeline in the future.

Viviid will deliver key development activities up to Final Investment Decision and provide design, engineering, procurement, and construction services. CIP will lead offtake sourcing, procurement activities and the financing process while leveraging Viviid’s local experience.

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Peter Sjøntoft, an associate partner in CIP, commented: “This is the second CI NMF I partnership in the Indian renewable energy market, reflecting India’s continuing importance as a key focus area for the fund. With this partnership, we are significantly strengthening our foothold in India and are delighted to partner with Viviid and look forward to working alongside their highly experienced team...”

India plans to reach net zero by 2070 and has set a target of 50% renewables in its energy mix by 2030.

According to the International Energy Agency, coal and oil have served as the bedrock of India’s industrial growth and modernisation and have caused the country's annual CO2 emissions to rise to the third highest in the world.

Currently, however, the country is exceeding its renewables targets thanks to technological developments, policy support, and active private sector participation.

India’s G20 presidency recently announced a renewed focus on renewables in an effort to spur much needed investment in the industry. The announcement was made by Prime minister Modi while inaugurating India Energy Week 2023 in Bengaluru. Modi mentioned that India’s energy demand has significantly increased and will reach 11% of the global demand as compared to 5% currently.

Renewable investment in the country will therefore be critical to reaching net zero.

India‘s 2023 budget has allocated Rs35,000 crores ($4.2 billion) as priority capital investment toward the energy transition in line with the government’s stated 2070 net zero goals.