EverSource Capital to Endow $1 billion in India's RE sector

EverSource Capital, the joint venture between private equity firm Everstone Capital and global solar project developer Lightsource BP has announced that it is eyeing to invest over $1 billion in renewable energy investments through its Green Growth Equity Fund. The National Investments and Infrastructure Fund (NIIF) of India and the UK government are anchor investors in Green Growth Equity Fund.

“We have done the anchor close. UK’s DFID and NIIF and, we as GP (general partner), have committed significant capital. So, we are at $340-350 million, and close to 50% of our target. We have now started the process to reach out to investors both in India and outside of India. The target is to raise around $700 million," believed Dhanpal Jhaveri, Managing Partner, Everstone Capital and Chief Executive Officer (CEO), EverSource Capital.

This platform will have a minimum commitment of a billion dollars, through the fund and through co-investments, Jhaveri added.

EverSource’s obligation is to make green investments fundamentally around decarbonization of energy and its uses, including transportation, which discriminates it from other infra-focused investors operating in India, and are considering only at heavy assets such as wind and solar power firms.

“Energy decarbonization is centered around using renewable as a source, whether it be solar, wind, offshore wind or hybrid, and provide it as clean energy to customers. In transportation, there is likely to be a rapid transition to electric mobility as costs of battery decrease. So, we are looking at investing in all those spaces. There is also the added agenda of investing in resource conservation, waste to energy, energy efficiency, water treatment, recycling, etc." Jhaveri alleged.

According to Jhaveri, the capital being invested in Ayana will principally go towards funding its growth. “We already have a 500 MW pipeline. We think that with this capital we can go in excess of 4-5 GW." He added that the combination of EverSource, NIIF and CDC will guarantee access to low cost capital for Ayana.