At Rs 1,000 crore, investment banking giant Goldman Sachs' is making its biggest investment in India and it's all going to ReNew Wind Power, a company owned by former Suzlon COO Sumant Sinha reports CNBC-TV18's Anchal Gupta.
At Rs 1,000 crore, investment banking giant Goldman Sachs' is making its biggest investment in India and it's all going to ReNew Wind Power, a company owned by former Suzlon COO Sumant Sinha reports CNBC-TV18’s Anchal Gupta.
For Goldman Sachs, renewable energy is a gold mine which explains why it has so far invested USD 1.5 billion in renewable energy across the world. Despite recent market volatility, the investment banking giant has pumped in Rs 1,000 crore (USD 200 million) into this space in India.
ReNew Wind Power, which has received this largesse in exchange for a majority stake has aggressive plans in the wind power space.
Sumant Sinha, Chairman & CEO, ReNew Wind Power said, “We currently have 85MW under construction which will be up and running by June next year. As we go forward we intend to add 200-300 MW every year to reach a capacity of about 1GW by 2015. Fundamentally, most of this investment will go as capex into this sector.”
The fact that the cost of producing power is constantly coming down has the company in high spirits. Add to that it can sell this power at preferential tariffs due to the government setting a renewable energy quota for every state, and it's in the money.
Sinha added that the prices that are announced in terms of preferential tariffs in most states are not that far from where these states are buying power from in terms of conventional sources. So, wind energy as a whole, is actually quite close to the conventional sources of energy at this point in time, he adds.
Renew Wind Power will earn revenues by selling the renewable energy certificates it earns from its wind power plants. With this, it looks like Goldman Sachs' investment is set to reap rich rewards.
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