IndiGrid partners Norwegian Climate Investment Fund, others to develop transmission projects in India – EQ
In Short : IndiGrid has partnered with the Norwegian Climate Investment Fund and other investors to develop transmission projects across India. This collaboration aims to bolster India’s power transmission infrastructure, ensuring efficient delivery of renewable energy. The partnership reflects a shared commitment to advancing sustainable energy solutions and supporting India’s clean energy transition.
In Detail : Power sector infrastructure investment trust IndiGrid announced on Thursday a strategic partnership with British International Investment (BII), the Norwegian Climate Investment Fund, and Techno Electric and Engineering Company to develop greenfield Interstate Transmission System (ISTS) projects.
In the fiscal year 2024, IndiGrid successfully operationalized its first greenfield ISTS project, Kallam Transmission, and secured five additional projects, including ISTS and Battery Energy Storage Systems (BESS), with an estimated capital expenditure of ₹2,000 crore to be invested over the next 12-24 months.
Under this partnership, BII and Norfund (via KNI India AS, Norfund’s joint venture with KLP, Norway’s largest pension company) will invest in IndiGrid’s three ISTS projects won last year and currently under construction— Ishanagar Power Transmission (IPTL), Dhule Power Transmission (DPTL), and Kallam Transco (KTCO). These projects are expected to facilitate the evacuation of around 6 gigawatts (GW) of renewable energy in Madhya Pradesh and Maharashtra.
Techno Electric will co-develop the IPTL and DPTL projects, investing minority capital and overseeing the complete execution of the projects on a Lump Sum Turnkey (LSTK) basis. IndiGrid will acquire full ownership of these projects once they become operational and generate revenue.
Rohit Anand, Head of Infrastructure Equity, Asia at British International Investment, emphasized the importance of substantial investment in India’s transmission sector, highlighting the need for ₹4.75 lakh crore to integrate renewable energy capacities and achieve decarbonization goals. He expressed BII’s commitment to bringing both capital and ESG expertise to support India’s energy transition.
IndiGrid CEO Harsh Shah noted that India’s commitment to energy transition and grid parity across renewable energy technologies, including BESS, has created significant investment opportunities, offering attractive prospects for sustainability-focused investors.
