A joint venture of a Tokyo Electric Power Company Holdings Inc. unit and Chubu Electric Power Co. will tap into the renewable energy business in India on the back of high economic growth and increasing electricity demand.
In a deal announced Tuesday, Jera Co. will acquire a 10 percent stake in Indian renewable power generator ReNew Power Ventures Ltd. for about $200 million through third-party allocation of new shares next month, and later dispatch an independent director and staff to the firm, the company said.
Jera will secure about 330,000 kw in generation capacity under the Indian producer, which currently operates solar and wind plants with a combined output of 1.5 million kw, while building new facilities capable of producing about 1.8 million kw.
India has set a target to achieve 100 million kw in solar power and 60 million kw in wind power by 2022, according to Jera.
ReNew Power Ventures, which is expected to take the lead in the country's capacity increase, is planning to implement a tender offer, probably in about a year.