BlackRock Real Assets, along with Mubadala are investing Rs.4,000 crore in Tata Power Renewables. With the fund, the company will be creating India’s most comprehensive renewable energy platform. The investment will be made by a way of equity/compulsory convertible instruments for a 10.53% stake in Tata Power Renewables. It would translate to base equity of Rs.34,000 crore.
The broad-based portfolio of assets ensures diversified yet stable revenue sources including 25-year fixed-price PPAs for grid-connected utility-scale projects. The first round of capital infusion is expected to be completed by June 2022 and the balance funds will be infused by end of the year.
Tata Power CEO Praveer Sinha informed that all new renewable energy businesses will be done via Tata Power Renewable Energy and all renewable energy assets and businesses of Tata Power will be transferred to Tata Power Renewable Energy. Sinha further informed that the BlackRock Real Assets-led consortium deal will take care of equity needs for the next two years for Tata Power Renewable Energy; beyond that, “we may look at more fundraising via equity for Tata Power Renewable Energy for new projects”, he said.
Next-generation renewables
Dr Praveer Sinha, CEO and Managing Director, Tata Power Company Limited commented, “Tata Power Renewables is an industry leader with a broad and deep portfolio of next-generation renewables businesses well placed to scale up rapidly based on its strong and consistent performance over the years. I am delighted to welcome BlackRock Real Assets & Mubadala to join us to take the renewables business to the next level of growth. The collaboration will support us to pursue exciting opportunities that lie ahead in the coming decades”
Anne Valentine Andrews, BlackRock’s Global Head of Real Assets resonating with the same thoughts added that India’s success in transitioning its energy economy will be crucial to the world’s ability to meet its climate goals. Over the next five years, Tata Power Renewables aims to achieve a portfolio of over 20 GW of renewables assets and a market-leading position in the rooftop and electric vehicle charging space across the country.
“With one of the largest portfolios of solar and wind assets in the country and a very experienced management team, Tata Power Renewables is at the forefront of India’s ambition to secure greater energy stability for its citizens while positioning its economy for a low carbon future. India’s success in transitioning its energy economy will be crucial to the world’s ability to meet its climate goals,” BlackRock’s global head of real assets Anne Valentine Andrews added in the statement.