Canadian institutional fund manager Caisse de dépôt et placement du Québec (CDPQ) has said that it would invest $150 million (over Rs 1,000 crore) in the renewable energy sector in India by 2020. It said that over the next three to four years, CDPQ will use its commitment to target hydro, solar, wind and geothermal power assets, with investments likely to take the form of select partnerships with leading Indian renewable energy companies.
CDPQ has thus become the latest foreign investor to tap the growing Indian Renewable Energy market.
Indian government has scaled up the renewable energy capacity target to 100 gigawatt of solar capacity and 60 gigawatt of wind power by the end of 2022.
CDPQ is one of the biggest investors in wind energy in North America and has financed over 5,400 MW of wind power through its stake in Invenergy. It also owns a major equity stake in London Array, the biggest offshore wind farm, generating 630 MW of wind energy.
“We believe India stands out as an exceptional country to invest in, given the scope and quality of investment opportunities, the potential for strategic partnerships with leading Indian entrepreneurs, and the current government’s intention to pursue essential economic reforms,” said Michael Sabia, president and chief executive officer of CDPQ.
CDPQ has also named former World Bank executive Anita Marangoly George as managing director, South Asia, effective April 1, 2016. She will be based in Delhi and will head CDPQ India while also developing and monitoring CDPQ’s investments in South Asian markets at large.
“I look forward to joining CDPQ India’s office and contributing to the performance of CDPQ in South Asia, a region that offers attractive investment opportunities in a number of key sectors,” said Ms George.
CDPQ invests in major financial markets, private equity, infrastructure and real estate across the world. In addition to its presence in South Asia through CDPQ India, CDPQ is present in Montreal, Quebec City, New York, Washington, Mexico City, Paris, Singapore, Sydney and Beijing.
Recently, another Canadian pension fund Canada Pension Plan Investment Board (CPPIB) opened its first office in Mumbai to invest in large companies along with PE firms. The pension fund has already invested around $2 billion in India over the past five years.