ReNew Energy Global Plc has recently made headlines by securing an impressive Rs 8,700 million (equivalent to $100 million) investment from British International Investment (BII). This strategic funding aims to propel the growth of ReNew’s solar manufacturing division in India, marking a significant step in the country’s renewable energy landscape.

BII’s Strategic Stake Acquisition

Following this investment, BII is poised to acquire approximately 10% stake in ReNew Photovoltaics Private Limited, the company’s dedicated solar manufacturing arm. This transaction awaits standard approvals, including those from financial institutions and antitrust entities, as disclosed in a recent filing with the Securities and Exchange Commission.

Expanding Manufacturing Capacity

According to Sumant Sinha, the Founder, Chairman, and CEO of ReNew, this investment will allow the company to boost its total manufacturing capacity to about 6.4 GW for both solar modules and cells. ReNew Photovoltaics, which was founded in 2021, currently operates a 6.4 GW solar PV module facility in Jaipur, Rajasthan, along with a 2.5 GW solar cell facility in Dholera, Gujarat.

• New Facility: The funds will primarily be allocated towards establishing a cutting-edge 4 GW TOPCon cell facility in Dholera, which is expected to enhance production capabilities significantly.
• First Investment: Notably, this marks BII’s inaugural investment in solar manufacturing within India.

Strategic Manufacturing Initiatives

Sinha emphasized that entering the manufacturing sector was a deliberate strategy to secure the supply chain. As India strives for self-sufficiency in solar production, the supportive regulatory environment plays a crucial role in this endeavor. ReNew Photovoltaics anticipates an annual output of 4.0-4.5 GW of solar modules, with excess production earmarked for third-party sales.

• Current Output: To date, the facilities have successfully supplied 900 MW to external clients, with additional orders totaling around 1.5 GW.
• Key Partners: Notable partners include NTPC and Shakti Pumps, solidifying ReNew’s position in the market.

Future Prospects

Sanjay Varghese, Group President for solar projects and manufacturing at ReNew, stated that the investment will be crucial for aligning cell production capacity with that of the modules. Construction of the new facility is already underway and is expected to be operational by the middle of the next financial year.

Shilpa Kumar, Managing Director and Head of India at BII, remarked on the significance of this investment for reinforcing India’s renewable energy supply chain. She highlighted that enhancing solar manufacturing capabilities will not only facilitate increased clean energy generation but also diminish reliance on imports, foster sustainable industrialization, and generate new employment opportunities.

ReNew’s Growing Clean Energy Portfolio

As of February 14, 2025, ReNew’s clean energy portfolio stands at approximately 17.4 GW on a gross basis. However, the company is considering delisting from Nasdaq, having received a non-binding proposal from a consortium that includes Abu Dhabi Future Energy Company PJSC-Masdar and the Canada Pension Plan Investment Board to acquire all outstanding shares at $7.07 per share.

This strategic investment and expansion initiative underscores ReNew Energy’s commitment to enhancing India’s solar manufacturing capabilities and contributing to a greener future.