Canada Pension Plan Investment Board (CPPIB) has reached an agreement to acquire a 6.3% stake in Indian renewable energy developer and operator ReNew Power Ventures from the Asian Development Bank for $144m.
ReNew Power has a portfolio of wind, utility-scale solar and rooftop solarpower-producing assets.
CPPIB managing director and fundamental equities head Scott Lawrence said: “This transaction aligns well with our overall power and renewables strategy, further diversifying the CPP Fund.
“India’s overall power industry continues to grow and we see solar and wind as attractive clean energy sources to meet the country’s growing demand for electricity.
“CPPIB will continue to seek opportunities to expand our power and renewables portfolio as demand grows worldwide along the transition to renewables.”
ReNew Power Ventures has a commissioned capacity of around 1,500MW in the wind energy sector and utility-scale solar projects with a capacity of 1,250MW are in the pipeline.
In February last year, Japanese power company JERA purchased a 10% stake in ReNew Power for $200m.
ReNew Power used the proceeds to commission a solar farm with a capacity of 143MW at Dichpally in the Indian state of Telangana.
With plans to reach an installed capacity of 510MW in the state, the power producer expects to invest more than INR37bn ($578.94m).