IndiGrid, India’s first and largest listed power sector infrastructure investment trust, has collaborated with a consortium of British International Investment (BII), a development finance body backed by the UK government and the Norwegian Climate Investment Fund, managed by Norfund, to form a new platform EnerGrid, which will develop greenfield, transmission and standalone battery energy storage system (BESS) projects in India.
This collaboration, which earmarked an investment of $300 million in the new platform, was formalised during the recently concluded COP29 summit in Baku. The partnership was signed with Diana Layfield, chair, BII; Harsh Shah, chief executive officer (CEO) and whole-time director, IndiGrid, and Tellef Thorleifsson, CEO, Norfund.
Commenting on the partnership, Harsh Shah noted, “The Indian power sector is undergoing a metamorphosis to support the country’s net-zero goals. The transmission sector is witnessing an unprecedented bidding pipeline, which we are looking to leverage. This partnership will ensure that IndiGrid continues to acquire synergistic brownfield projects while meaningfully creating a growth pipeline in the under-construction space.”
Deal details
With the EnerGrid platform, IndiGrid, BII and Norfund, alongside KLP through KNI India AS, have committed approximately $300 million, with each partner contributing around $100 million. This capital will enable EnerGrid to target projects worth approximately $1.2 billion over the next few years.
The partnership builds on the success of earlier co-investments where BII and Norfund (through KNI India AS, Norfund’s joint venture with KLP, Norway’s largest pension company) invested in three large greenfield transmission projects–Ishanagar Power Transmission Limited (IPTL), Dhule Power Transmission Limited (DPTL) and Kallam Transmission Limited (KTL), which were won by IndiGrid in financial year 2024. India’s Techno-Electric and Engineering Company Limited is co-developing the IPTL and DPTL projects.
Under the pre-agreed valuation model, IndiGrid will acquire full ownership of EnerGrid projects upon their commercial operations, ensuring seamless integration into its existing operations. BII and Norfund provide crucial financial and strategic support for this initiative. Avendus Capital served as the financial adviser to IndiGrid for this transaction.
IndiGrid brings operational expertise, with assets under management collectively valued at Rs 297 billion in its portfolio, which spans 20 states and two union territoriess. Its portfolio comprises 83 different revenue generating elements with 8,700 ckt km of lines and 22,550 MVA transformation capacity. The investment manager of IndiGrid is wholly-owned by KKR.
In addition, it is deploying about 1.1 GW peak of solar generation capacity and 400 MWh of BESS projects. These include a 20 MW/40 MWh BESS project strategically installed at BRPL’s 33/11 kV Kilokari substation in Delhi and a 180 MW/360 MWh BESS secured a build-own-operate basis in Gujarat Urja Vikas Nigam Limited’s auction. Recently, IndiGrid won another 500 MW BESS project in the reverse auction process conducted by NTPC Vidyut Vyapar Nigam Limited. With this project, IndiGrid’s BESS portfolio has reached a capacity of 450 MW or 900 MWh.
Norfund, with a committed portfolio of $3.6 billion, has an extensive history of international investments in sub-Saharan Africa, South and Southeast Asia, and Latin America. BII has investments in more than 1,580 businesses across
65 countries.
The partnership highlights the importance of global partnerships in tackling the challenges of renewable energy integration. By pooling expertise and resources, EnerGrid seeks to create infrastructure that not only supports India’s energy transition but also attracts international capital into the sector.
EnerGrid’s focus on greenfield transmission and BESS aligns with India’s broader energy goals. As per the Central Electricity Authority (CEA), evacuating 600 GW of renewable energy by 2032 will require the development of 170,000 ckt km of transmission lines over the next eight years. The transmission segment is projected to attract investments of over Rs 9.1 trillion till 2032, as outlined in the CEA’s National Electricity Plan. In addition to transmission lines, the country will need an additional transformation capacity of 1,200 GVA along with 47 GW of BESS and 31 GW of pumped storage plants to support the growth of renewable
energy capacity.
By combining IndiGrid’s operational acumen with the financial strength of BII and Norfund, EnerGrid showcases the potential of global partnerships to drive sustainable growth.
In conclusion, EnerGrid represents a pivotal step in India’s energy journey. With a project pipeline valued at $1.2 billion, the platform is well positioned to deliver long-term value while fostering sustainability, resilience and innovation.