A fund managed by Generation Investment Management’s climate-focused business, Just Climate, is investing $150m (€136m) in Continuum Green Energy to accelerate the deployment of renewable energy projects in India.
The pension funds-backed $1.5bn Climate Asset Fund I – launched in 2023 to focus on industrial climate solutions – has agreed to make the equity investment to help support Continuum’s deployment of wind-solar-hybrid energy generation and storage projects across the country.
Continuum currently operates and is developing approximately 2.2GW of wind and hybrid wind-solar projects. The company plans to add another 1.3GW of capacity within the next two years.
Morgan Stanley Infrastructure Partners has been a long-term investor in Continuum since 2012 through its North Haven Infrastructure Partners I fund.
Tushar Kumar, a partner at Just Climate, said: “Continuum’s deployment of renewable energy will help displace coal power generation, realising the type of significant greenhouse gas emissions abatement that we at Just Climate look for in our investments while also managing impacts on people and planet.
“Continuum is the first investment in India from our industrial decarbonisation fund and complements our portfolio of other industrial decarbonisation solutions in the US and Europe.”
Arvind Bansal, co-founder and the CEO of Continuum, said: “We are excited to have Just Climate join Morgan Stanley Infrastructure Partners and the founders as a partner of Continuum. Just Climate is a specialist sustainable investor with a world-class team and expertise in renewable energy and sustainability more broadly.
“We know that building renewable power comes with challenges, and so welcome Just Climate’s expertise as we embark on our next phase of growth and value creation for all our stakeholders. This equity raise, together with our earlier financing transactions in the bond and credit markets, puts Continuum on a strong footing to continue executingits differentiated, fast-paced and profitable growth strategy.”
Raja Parthasarathy, MD at Morgan Stanley Infrastructure Partners, said: ”Since the time of our investment, Continuum has demonstrated its ability to deliver high-quality projects with a superior customer value proposition, while simultaneously diversifying its sources of financing to optimise its cost of capital.”
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