Vena Energy, Asia-Pacific’s leading renewable energy company, announced today that it has reached financial close on the Gudadur Hybrid Project, a 176 MW solar-wind hybrid renewable energy project in the Indian state of Karnataka. The project consists of 48 MW of solar capacity and 128 MW of wind capacity, and it is expected to achieve commercial operation in the fourth quarter of 2023. Once completed, the Gudadur Hybrid Project will be capable of generating enough clean energy to satisfy the electricity requirements of over 500,000 households yearly (1), or the equivalent of reducing around 73,688 tonnes of greenhouse gas emissions compared to thermal generation (2).
The Gudadur Hybrid Project is Vena Energy’s first green project financing arrangement in India and is supported by five Mandated Lead Arrangers, including the Hongkong and Shanghai Banking Corporation Limited (HSBC), BNP Paribas Bank, Mizuho Bank Limited (Mizuho), Sumitomo Mitsui Bank Corporation (SMBC), and Axis Bank Limited. BNP Paribas, Mizuho, and SMBC acted as Green Loan Coordinators, HSBC acted as Account and Modelling Bank, and Axis Bank Limited acted as the Lenders Agent.
“The Gudadur Hybrid Project combines the benefits of solar and wind energy to increase power system efficiency and reduce the need for grid expansion. By co-locating solar and wind generation systems on the same site, the project generates renewable energy throughout the day and night, making it a cost-effective solution for decarbonizing India’s economy. This approach not only reduces carbon emissions but also lowers the Levelized Cost of Energy (LCOE), which makes it an attractive option for sustainable development, and a powerful catalyst for India’s transition to a greener future.” said Nitin Apte, CEO of Vena Energy. “We are thankful to our financial partners HSBC Bank, BNP Paribas, Mizuho Bank, SMBC and Axis Bank for supporting this project, as we pursue our corporate mission to accelerate the energy transition across the Asia-Pacific region.”
“We are delighted to partner with Vena Energy for their first hybrid renewable energy project in India. The transaction highlights our capabilities in executing complex project financing situations in the renewable energy sector in India and is a meaningful addition to our sustainable financing credentials. This transaction is also aligned with HSBC Group’s global commitments to sustainable financing and transition to Net Zero. We will continue to leverage our network and expertise to support key clients for the development of clean energy infrastructure in key markets.” said Amitabh Malhotra Head of Global Banking HSBC.
Ramakrishna Pataballa, Managing Director and Head, Project Finance & Debt Advisory Asia, BNP Paribas said “BNP Paribas is pleased to be able to continue supporting Vena Energy as an important and valued client of the APAC franchise. The Gudadur Hybrid Project further builds upon Vena Energy’s high-quality portfolio of renewable assets. Assets like the Gudadur Hybrid Project will be key in meeting India’s goal of 50% of the country’s electricity generated by renewables by 2030.”
“We have promoted sustainability initiatives as an integral part of our group strategy and have expanded our positive impacts on the environment through renewable energy financing. India remains a key market for the group’s renewable energy strategy. The Gudadur Hybrid Project financing broadens our track record in renewable energy project financing in India across local currency funding solutions. We are pleased to have worked with Vena Energy on this noteworthy deal.” said Mr. Lim Suy Meng, Head of Power and Infrastructure, Project Finance Department, Asia Office at Mizuho Bank, Ltd.
“SMBC is committed to making sustainability a reality with our stakeholders and contributing to the markets we have a presence in. We are delighted to support our key client, Vena Energy on its growth journey in India towards a more sustainable future” said Luca Tonello, Managing Director, Structured Finance Department, Asia Pacific at SMBC.
Ganesh Sankaran, Group Executive – Wholesale Banking Coverage Group of Axis Bank said, “Axis Bank is the first financial institution in India to establish an ESG Committee at the Board level and has formalized its commitment to sustainable development that includes targeted lending to sectors with positive social and environmental outcomes. We are delighted to partner with Vena Energy on this renewable energy project that reiterates our commitment to support such high impact initiatives.”
1. Households Powered is based on annual household electricity consumption of each operating country derived from Residential Electricity Consumption data obtained from the International Energy Agency (2019) and number of households data derived from population data from United Nations (2020) and household size data taken from United Nations (2019) and Statista database (2020).
2. Greenhouse Gas (GHG) Emissions Reduction is calculated assuming that the generation from renewable energy plants replaces an equal quantity of electricity generated using coal, gas, and oil. Unique GHG emissions factors were calculated for each country based on respective country energy mix and emissions data obtained from BloombergNEF (2019). Includes assets in operation, construction, and contracted stages, and projects in various stages of development.
3. Includes all assets in operation, construction, contracted, and development stages.