GE (NYSE:GE) to invest up to $31 million in India wind power project
India continues to attract investments around its drive for renewable energy. This time it’s wind, not solar power that is the draw. An investment vehicle of GE (NYSE:GE)has agreed to invest up to $31 million in Mytrah Vayyu (Tungabhadra) Private Ltd, in exchange for 49 percent of its shares. The company is a subsidiary of India’s Mytrah Energy (LON:MYT), one of the world’s largest wind energy companies.
Guayama P.R. Holdings B.V., the investment vehicle of GE Energy Financial Services, is supporting the development of wind energy in the Indian state of Andhra Pradesh.
Mytrah Energy is one of the largest independent power producers in renewable energy in India, with 877.9 MW of wind power generation across 15 projects and eight States. It has 211 wind masts installed, and says it currently has an active development pipeline of about 3000 MW of wind and 500 MW of solar.
Having reported in May that it had surpassed its wind capacity target for the start of the season, the Mytrah subsidiary said that an additional 51.50 MW had been commissioned at its Nazeerabad and Nipaniya projects.
Some 31.50 MW was added to the Nazeerabad project while 20 MW was commissioned at the new Nipaniya project in Madhya Pradesh State, it reported. The company's total operating wind portfolio now stands at 877.9 MW, with an additional 40 MW erected and under commissioning.
"Attracting investment from GE is a huge endorsement of Mytrah's operations and its growing position in India's power market, and we are delighted to have successfully completed this fundraising,” said Ravi Kailas, Chairman and CEO, Mytrah Energy Ltd.
With the company on track to reach 1000 MW operating capacity by mid-2017, these new funds “will help to maintain positive momentum as we enter the next development stage and support the construction of a major power project," he added.
Mytrah has also entered into a contract with Sungrow Power Supply Company Limited (SHE:300274), a company based in Hefei, China, for the purchase of up to 150 MW of Solar Central Inverters. It describes Sungrow as “the world's leading PV-inverter manufacturer with over 20 GW installed globally”.
Mytrah Energy has, in the past, raised around $350 million in debt financing from the likes of Merrill Lynch International, Apollo Global Management LLC and Asian Development Bank. In London, it is listed on the Alternative Investment Market (AIM) of the London Stock Exchange.
In March this year, GE announced the launch of its Digital Wind Farm solution in India. “It is a dynamic, connected and adaptable wind energy ecosystem that leverages big data and analytics and pairs a world-class turbine with a digital infrastructure. This in turn enhances production, reduces cost and boosts availability and productivity over the life of the wind farm. This launch signifies the beginning of an important phase in technological innovations for the renewable energy market in India,” it said.
Dina Medland is an independent writer, editor and commentator with a strong focus on issues around corporate governance, ethics, the workings of the boardroom and sustainable business. She is on the team of contributors to @ForbesEurope and is an ex-Financial Times staff member who has been a regular contributor in recent years. Further details about her background and a portfolio of work – including her commercially sponsored blog ‘Board Talk’ are available on her website http://www.dinamedland.com