Engie and Abraaj JV eyeing $1 billion wind power investment in India
A joint venture (JV) of French energy firm Engie SA and Dubai-based private equity firm Abraaj Group may invest around $1 billion to build a 1,000 megawatt (MW) wind power platform in India.
The strategy ahead for the JV announced last week involves bidding for new contracts and making acquisitions to reach the targeted capacity.
The capital expenditure planned in equity and debt comes in the backdrop of India’s wind sector transitioning from a feed-in tariff regime to tariff-based competitive auctions.
While feed-in tariffs ensure a fixed price for power producers, wind power tariffs in India followed the solar route and hit a record low of Rs3.46 per kilowatt hour (kWh) in a February auction conducted by Solar Energy Corp. of India.