In a significant boost to India's renewable energy sector, Nasdaq-listed ReNew Energy has secured a major financing agreement worth $331 million with the Asian Development Bank for developing a large-scale clean energy project in Andhra Pradesh.
Project Details and Financial Structure
The financing deal, signed on Friday, will support the development of an integrated renewable energy project that combines 837 MWp of wind and solar capacity with a substantial 415 megawatt-hour battery energy storage system. This innovative configuration is designed to deliver 300 MW peak power, addressing the critical need for reliable renewable energy during high-demand periods.
The ADB's $331 million debt package comprises up to $291 million in local currency financing from the bank's ordinary capital resources and up to $40 million from the ADB-administered Leading Asia's Private Infrastructure Fund 2 (LEAP 2). Additionally, the multilateral agency will mobilize an extra $146 million through other lenders, bringing significant international financial backing to India's green energy transition.
Strategic Importance and Leadership Perspectives
Sumant Sinha, founder, chairman and chief executive officer of ReNew, emphasized the project's groundbreaking nature, stating that it "demonstrates that renewable energy can now be delivered competitively at grid scale as per peak power demand requirements."
Bhargav Dasgupta, vice-president for market solutions at ADB, revealed that this marks the first peak power renewable energy project to be financed by the Manila-headquartered agency. The project is expected to generate approximately 1,641 GWh of clean energy annually, making a substantial contribution to India's renewable energy targets.
Dasgupta highlighted the transformative potential of combining battery storage with hybrid renewable systems, noting this approach could be a "game-changer, unlocking dependable clean power, stabilizing the grid, and advancing the country's renewable energy sector."
Broader Context and Company Strategy
This development aligns with ReNew's earlier announcement in April of a $2.5 billion investment to develop a massive 2.8 GW hybrid renewable energy complex in Andhra Pradesh, positioning the state as a key hub for clean energy infrastructure.
The ADB financing comes amid ReNew's strategic capital recycling initiatives. Recent moves include:
- Selling 300 MW solar projects to Singapore's Sembcorp in a $190 million deal
- Signing agreements to sell solar and transmission assets to IndiGrid Infrastructure Trust
- Receiving an $8.15-per-share cash buyout offer for potential delisting from Nasdaq
As of August 2025, ReNew maintains an impressive portfolio including 18.2 GW of gross clean energy capacity and 1.1 GW of battery energy storage systems, alongside substantial manufacturing capabilities of 6.4 GW solar modules and 2.5 GW solar cells.
The project represents a significant milestone in India's journey toward energy security and climate goals, demonstrating the viability of large-scale renewable energy solutions integrated with advanced storage technology to meet the nation's growing power demands sustainably.
