ReNew Energy inks MoU with Asian Development Bank for $5.3 billion

ReNew Energy inks MoU with Asian Development Bank for $5.3 billion

Gurugram-headquartered ReNew Energy Global Plc has signed a Memorandum of Understanding (MoU) with the Asian Development Bank (ADB) to collaborate on climate change mitigation and adaptation projects for an investment value of more than $5.3 billion between 2023 and 2028, the two entities announced on December 4.

ReNew, which was founded by Sumant Sinha as a renewable energy company, has a portfolio of almost 14 gigawatts (GW) of clean energy capacity. It is now pivoting to also be a decarbonisation partner. The MoU has identified potential investments in renewable energy projects, manufacturing, carbon offset projects, and green hydrogen to jointly support the sustainable energy transition.

“Significant financing is needed to reach global climate targets, and this agreement helps secure the capital needed. We look forward to collaborating with the Asian Development Bank over the coming years to meet India’s target of achieving 500 GW of renewable capacity by 2030,” said Sumant Sinha, Founder, Chairman, and CEO, ReNew.

With the MoU, the partners expect to attract more international investors to participate in financing long-term debt for renewable energy infrastructure projects. This is part of ADB’s ambition of $100 billion in funding for green energy projects by 2030.

Suzanne Gaboury, ADB’s Director General for Private Sector Operations, said, “This collaboration between ADB and ReNew envisages the continued cooperation of both organisations over the next five years by providing a framework for working together towards shared goals and delivering on the results envisioned in combating climate change.”

ReNew has already invested around $8 billion in the clean energy space, and the MoU will enable it to raise further funding for renewable energy projects.

The MoU was signed at COP28, the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), which began with the landmark adoption of an agreement on a new Loss and Damage Fund.

Speaking exclusively to Moneycontrol last month, ReNew’s Sinha had highlighted the need for funds to finance clean energy projects. He said that for power generation alone, India needs to increase investments by about three times to add 50 GW a year.