Jakson Green Nears $476 Million Fundraise for Clean Energy Expansion

Jakson Green, a prominent player in India's burgeoning renewable energy sector, is on the verge of securing a substantial investment to significantly expand its clean energy capacity. The company is in advanced negotiations to raise over 40 billion rupees ($476.4 million) by November 2024, as revealed by Joint Managing Director Krishnan Kannan.

This fundraising initiative comes as India, the world's third-largest producer and consumer of electricity, pushes forward with its ambitious renewable energy goals. The country aims to add at least 500 gigawatts (GW) of clean energy by 2030, positioning itself as a global leader in sustainable power generation.

Jakson Green currently boasts an installed capacity of approximately 250 megawatts (MW). With the anticipated investment, the company plans to quadruple its capacity, adding 1 GW by early 2026. This expansion aligns with India's broader objective of achieving 50% of its energy requirements from renewable sources by 2030.

The investment structure for this ambitious project will comprise a mix of 75% debt and 25% equity. Kannan disclosed that the company is collaborating with a strategic partner to facilitate this investment, highlighting the growing interest in India's renewable energy market from both domestic and international players.

India's renewable energy sector has been experiencing rapid growth, attracting significant foreign direct investment. In the fiscal year 2021-22, the sector received inflows totaling $1.6 billion. This trend is expected to continue, with projections suggesting that India's renewable energy sector could attract investments worth $80 billion over the next four years.

Jakson Green's expansion plans are part of a larger trend in the Indian renewable energy landscape. The country's solar power capacity has reached an impressive 61.97 GW as of January 2023, while wind power installations stand at 41.99 GW as of December 2022. These figures underscore India's position as the fourth-largest country in terms of renewable power installed capacity.

The company's growth strategy extends beyond the current fundraising efforts. Kannan revealed plans to add 1 GW of renewables capacity annually for the next five years, with additional fundraising to be conducted as needed. This ambitious target reflects the company's confidence in the sector's potential and aligns with India's long-term goal of achieving net-zero carbon emissions by 2070.

Jakson Green has already made significant strides in securing projects and funding. The company has won over 1 GW of renewable energy projects from various Indian government entities, including the Solar Energy Corporation of India and NHPC. In July 2024, the firm secured a credit facility from First Abu Dhabi Bank to support its international expansion efforts.

Further bolstering its financial position, Jakson Green signed an agreement with REC, a state-owned infrastructure lender, in September 2024. This deal provides the company with 14.2 billion rupees to fund its power projects, demonstrating the strong support from both private and public sectors for renewable energy initiatives in India.

As India continues to prioritize clean energy development, the country has launched several innovative programs. These include the National Hydrogen Mission to promote green hydrogen production and the PM-KUSUM scheme to encourage solar energy adoption in agriculture. Additionally, the Green Energy Corridor project aims to facilitate the integration of renewable energy into the national grid.

The rapid expansion of India's renewable energy sector has also had a positive impact on employment. The country's renewable energy workforce increased by 47% between 2019 and 2020, with the sector now employing over 700,000 people as of 2021. This growth in green jobs underscores the economic benefits of transitioning to clean energy sources.

As Jakson Green moves closer to finalizing its significant fundraise, the company's expansion plans serve as a testament to the vibrant and dynamic nature of India's renewable energy market. With strong government support, increasing private sector participation, and ambitious national targets, India is well-positioned to continue its trajectory as a global leader in sustainable energy development.