India's ambitious journey towards a greener future is witnessing an unprecedented influx of international investment, with major global players committing billions to develop solar, wind, and battery storage projects across the country.
AP Moller Capital's Maiden India Foray
In a significant move, Copenhagen-based AP Moller Capital is making its debut private equity investment in the Indian market. The institutional fund arm is backing a new renewable energy platform set to develop 900 MW of clean energy capacity. While this marks a fresh chapter for the fund, the wider AP Moller Group—renowned for the Maersk shipping line—has maintained a presence in India for over thirty years.
The platform's local partner is Mumbai-based Rays Power Infra, a prominent renewable energy developer. Rays Power boasts an impressive portfolio of 11.6 GW across solar, wind, and hybrid projects and has recently filed draft papers for an Initial Public Offering (IPO) aiming to raise Rs 1,150 crore. This strategic partnership not only strengthens AP Moller Capital's commitment to India but also expands its Asian footprint, where it has already supported the development of over 2 GW of renewable capacity.
ArcelorMittal's $900 Million Green Power Push
Simultaneously, global steel behemoth ArcelorMittal is significantly scaling up its clean energy investments in India. The company plans to inject a substantial $900 million to add an additional 1 GW of solar, wind, and battery storage capacity. This investment will elevate its total renewable energy portfolio in the country to 2 GW.
The clean electricity generated from these new projects will be directly channeled to power the operations of AMNS India, ArcelorMittal's joint venture with Japan's Nippon Steel. This move is a crucial step in decarbonizing its energy-intensive steelmaking processes. The projects will be spread across three states:
- A 36 MW solar plant in Amaravati, Maharashtra.
- A major 400 MW solar project coupled with 500 MWh of battery storage in Bikaner, Rajasthan.
- A hybrid complex in Bachau, Gujarat, combining 250 MW of wind, 300 MW of solar, and 300 MWh of integrated battery storage.
India Emerges as a Global Renewable Energy Hub
These colossal investments from a Danish investment fund and a European industrial giant underscore a powerful global trend. With renewables now contributing nearly one-third of global electricity generation as of 2024, the sector's rapid growth is attracting a diverse pool of capital. Investors, ranging from private equity funds to multinational corporations, are increasingly viewing India as a compelling and strategic destination for green investments.
The nation's clear policy focus, vast renewable resource potential, and growing energy demand are creating a perfect storm for capital deployment. This wave of funding is set to accelerate India's clean energy transition, bolster its energy security, and create significant economic opportunities while helping major industrial consumers meet their sustainability goals.
