Chennai, Nov 25 (ANI/Business Wire India): Orient Green Power ("OGPL" or "the Company"), a dedicated renewable energy generation company with operations in India, announced completion of a fund raise of 55 million dollar led by Olympus Capital Holdings Asia ("Olympus Capital").
Olympus Capital is investing 35 million dollar, and Shriram EPC ("SEPC") and Bessemer Venture Partners ("BVP") have invested 10 million dollar each on the same terms. With the completion of this round of funding, the Company has access to 75 million dollar of equity, including funds raised earlier from BVP and SEPC.
This equity infusion is in line with OGPL's business plan to achieve its growth objectives. It will provide OGPL with the capital to implement its operating plan of setting up and acquiring power generation assets based on renewable sources including biomass, cogeneration, wind, small hydro, and biogas. The Company currently operates biomass and wind energy assets with a capacity of 70 MW. It is currently implementing projects of a capacity of 146 MW and aspires to install or acquire renewable energy assets of a total capacity of 500 MW over the next five years.
The projects of OGPL are designed to sell power under long-term Power Purchase Agreements (PPAs). OGPL's business economics are enhanced by the creation and sale of CERs from the Clean Development Mechanism.
The depleting sources of conventional energy, the gap between demand and supply given future requirements of power, and the need to keep global CO2 emissions under check, makes renewable energy very attractive as a long-term business.
T. Shivaraman, founder of OGPL and Managing Director of SEPC, said, "We remain solidly convinced about the business prospects of renewable energy ventures. Toward that end we have invested tremendous financial and human resources to establish a versatile and robust operating model, and I am glad to share that we have already made noticeable on-the-ground progress in this direction. We believe that we are on the cusp of the next growth wave and would like to be prepared to establish a sizeable footprint in this area.
I believe that renewable energy truly represents a win-win opportunity for both society and business, creating a real long term value proposition for all its stakeholders. Though there are short-term challenges that seem accentuated in the current economic environment, from a medium to long-term viewpoint the prospects are outstanding.
We are delighted to partner with Olympus Capital, which has a strong focus on the environmental services sector, and further strengthen our relationship with Bessemer Venture Partners, both of whom provide more than just capital to our business. They bring with them innovative ideas, a unique vision, and insights that are invaluable when establishing business in a developing sector. With marquee investors and an able management team led by P. Krishnakumar, Managing Director, I am confident that OGPL is positioned to become a global leader in renewable energy over the next few years."
Gaurav Malik, Managing Director, Olympus Capital India, commented, "OGPL has the depth and domain expertise needed to capitalize on the significant and growing opportunities in the renewable energy sector in India. The Company offers a strong platform for the consolidation of renewable assets in a country that is short of power. With a strong mandate from our global investor base to invest in the environmental sector in India and other parts of Asia, even in this extremely difficult global scenario, Olympus Capital is pleased to partner with SEPC and BVP in making this investment."
Rob Chandra, BVP's Managing Partner, commented, "OGPL started as an idea with Shriram EPC two years back and since then we have come a long way to become one of India's leading clean energy generation companies. BVP continues to be committed to OGPL and Shriram EPC and are delighted to have a new partner in Olympus Capital."