Greenko Energy Holdings, situated in Hyderabad, has raised $700 million in equity capital from its founders, GIC, an ADIA-affiliated wholly-owned subsidiary, and ORIX Corporation, a Japanese financial conglomerate.

The business announced in a late-night announcement on Thursday that it has signed binding contracts for a $700 million main stock raise.

According to the corporation, this investment has not changed the shareholder structure.

The company stated that the $700 million investment will be put towards the construction of pumped storage projects with a storage capacity of more than 25 GWh. ‘Carbon-free energy’ in the amount of 45 billion units would be possible (CFE).

The equity investment from the current owners affirms their faith in our mission, according to Greenko’s CEO and MD, Anil Kumar Chalamalasetty. Greenko, which continues to provide long-term value to all of our stakeholders, is driving India’s energy revolution through the adoption of large-scale and long-term solutions. The discovery of green molecules and chemicals at affordable prices, as well as CFE’s contribution to accelerating industrial decarbonization, are all positive developments.

Chalamalasetty and Mahesh Kolli, who are currently the company’s president and joint managing director, created Greenko in 2006.

According to Greenko, it was the first dispatchable renewables company in India. Recently, the business has expanded beyond conventional green energy initiatives. It has started the first complete green energy storage project in the nation and will provide energy storage solutions via its cloud platform to large energy consumers using a distinctive business model.

Moreover, it has started work on a 5.2 GW integrated renewable energy storage project in Andhra Pradesh. 10 GWh of storage, 3 GW of solar, and 0.5 GW of wind power are all included in the project. According to the project’s previous announcement, private investors like ArcelorMittal, Ayana Renewables, and a partnership with SECI for the supply of power to Bihar, Rajasthan, and DVC have already invested in the project.

The energy storage method used by Greenko for this project is an “off-stream closed loop pump hydro,” according to Kolli, who earlier spoke to Business Standard. It is more environmentally friendly and costs half as much as battery storage. To achieve the storage requirements in conjunction with the expansion plans for solar and wind energy, India would need to build close to 50 GWh of pump hydro. After Greenko entered this industry in 2017, energy plus storage has become competitive with non-pithead coal-based power, if not cheaper, according to Kolli’s remarks from a year ago.

The first green hydrogen manufacturing project by a domestic oil refinery was won last month by Greenko, which had the lowest bid.

Chief Investment Officer of Infrastructure at GIC, Ang Eng Seng, stated in a public statement: “The key to accelerating India’s energy transition plans, enabling widespread adoption of renewable energy, and accelerating the global transition to a net-zero economy is cost-effective long-duration energy storage. With its pumped storage projects, Greenko is in a unique position to be the market’s top provider of long-term energy projects.”