Renewable energy private trust launched in India

New Delhi: GE Energy Financial Services and EPURON Pte Ltd Singapore, a regional subsidiary of Germany’s Conergy Group, have launched Asia-Pacific’s first renewable energy private trust to spur investments into wind, solar, small hydroelectric, biogas and biomass project across the region.

It plans to build a portfolio of some 200 MW through potential investments totalling $250 million within the next five years, of which over 60 per cent would be invested in India, Mr Venkittu Sundaram, Director and Country Head, EPURON Renewable Energy Pvt Ltd, said.

The proposed Renewable Energy Trust Asia is being developed as an investment vehicle focused on the $7-billion annual renewable energy markets of India, the ASEAN countries and South Korea, which will acquire and operate renewable energy projects from both EPURON and third parties. GE Energy Financial Services will share expenses, deciding on each proposed investment when presented.

The trust is already started looking at wind energy, small hydro and biomass projects in India for funding and expects to make its first investment within a year. Once a sufficient investment volume has been achieved, RETA may be listed on the Singapore Exchange Securities Trading Ltd stock exchange, becoming the first pure-play renewable energy business trust to be listed in Asia-Pacific.
With an 80 per cent stake, GE Energy Financial Services will serve as RETA’s anchor investor. In addition to maintaining its core expertise in greenfield development, EPURON will hold a 20 per cent stake in RETA and act as its Trustee-Manager, he said.

EPURON will be responsible for project development, debt financing, acquisition of hardware and supervision of the construction of renewable energy projects. After projects have been completed, EPURON will manage them.