Power sector infrastructure investment trust IndiGrid said on Thursday that it has partnered with British International Investment (BII), Norwegian Climate Investment Fund and Techno Electric and Engineering Company to develop greenfield Interstate Transmission System (ISTS) projects.
During FY24, IndiGrid operationalised its first greenfield ISTS project, Kallam Transmission and won five additional projects, across ISTS and Battery Energy Storage System (BESS), with a tentative capex outlay of around ₹2,000 crore to be deployed over the next 12-24 months, it said.
Under this partnership, BII and Norfund (through 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).
The projects are expected to support evacuation of renewable energy of around 6 gigawatts (GW) in Madhya Pradesh and Maharashtra.
co-developing projects
Additionally, Techno will co-develop the IPTL and DPTL projects. Techno will invest minority capital and will also be responsible for the complete execution of the projects on a Lump Sum Turnkey (LSTK) basis. IndiGrid will be acquiring an entire stake in these projects once they are operational and revenue generating.
Rohit Anand, Head of Infrastructure Equity, Asia at British International Investment, said: “India requires a substantial investment of ₹4.75 lakh crore in the transmission sector to facilitate integration of renewable energy capacities and meet its decarbonisation goals. As a long-term partner and committed climate finance provider to India, we are delighted to bring not just our capital but also our ESG expertise to support the transmission sector which is a vital part of India’s energy transition.”
IndiGrid CEO Harsh Shah said ““On the back of India’s commitment to energy transition and grid parity across renewable energy technologies including BESS, we are witnessing tremendous investment opportunities in our target areas. This offers a compelling prospect for investors with preference for sustainability.”