New Delhi, India, May 29, 2013
—IFC, a member of the World Bank Group, is providing $5 million to an independent green energy producer NSL Renewable Power through compulsorily convertible debentures to support the development of wind and hydropower projects, and expand access to clean energy.
IFC’s investment will help NSL Renewable Power double its power generation capacity over the next 18 months. Starting 2015, the project is expected to avoid 300,000 tons of CO
2
emissions per year. This second round of financing follows a $20 million equity investment that IFC had made in the company in 2011.
“IFC’s financial support and expertise in the renewable energy sector will encourage other investors to invest in NSL Renewable Power,” said M Prabhakar Rao, Chairman, NSL Group. “IFC’s strategic partnership will help the company transition from being a medium sized market participant to a domestic market leader and, over time, become an investor and developer in other emerging markets.”
According to estimates, nearly one-third of India’s population lack access to electricity. The country suffers from serious power shortages, especially during peak hours, with peak gaps at around nine percent. India faces the twin challenges of bridging this energy gap while dealing with the threat of climate change.
“The investment will help partially address power scarcity and contribute to mitigating climate change impacts,” said Thomas Davenport, IFC Director for South Asia. “IFC’s support to NSL Renewable Power will also help the company benchmark its environment and social standards to global best practices.”
NSL Renewable Power develops and operates renewable energy projects using biomass, wind, hydro, and solar technologies. The company’s operational capacity is around 185 MW across India.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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