Daily News Wrap-Up: POWERGRID Board Approves Raising ₹6 Billion Through Bonds

PFC to receive ¥2.6 billion loan from Japan Bank to mitigate greenhouse gas emissions

March 28, 2023


The Power Grid Corporation of India (POWERGRID) said it would raise unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds worth ₹6 billion (~$72.86 million) through private placement. The funds will be raised through the securitization of cash flows for ten of its special-purpose vehicle and an operational subsidiary ­POWERGRID NM Transmission. The subsidiary has been engaged in implementing Nagapattinam-Salem 765 kV D/C Line (about 203 kilometers) and Salem- Madhugiri 765 kV S/C Line (about 220 kilometers).

Power Finance Corporation (PFC) has inked a project loan agreement with the Japan Bank for International Corporation for ¥2.6 billion (~$20.2 million). PFC would use the funds under the facility to finance its renewable energy portfolio and provide competitive rates. Under the agreement, the Japan Bank would finance some of PFC’s clean projects that are aimed at mitigating greenhouse gas emissions while establishing sustainable solutions in eco-friendly operations.

Madhya Pradesh Industrial Development Corporation, Indore, has invited bids for the purchase of 97,000 renewable energy certificates (RECs) through power exchange or bilateral trade at the special economic zone (SEZ) in the Dhar district of Madhya Pradesh. The last date to submit the bids is March 28, 2023. Bids will be opened the following day.

The Ministry of Civil Aviation has advised the authorities at the state level to ensure that carbon emission reduction measures are incorporated into the design and standards for greenfield airport development proposals, detailed project reports, and airport master plans before submitting them to the nodal ministry. Further, the ministry has also advised the Airports Economic Regulatory Authority to consider the costs of using green energy when determining airport tariffs. The regulator sets the fees for passengers using the airports.

India-based electric mobility company Motovolt said it has acquired a stake in eROCKIT, a Germany-based electric two-wheeler original equipment manufacturer. Motovolt’s initial investment of €1 million (~$1.07 million) in eROCKIT is intended to support the product development and production of eROCKIT’s high-end models at their manufacturing facility located in Berlin, Germany. Additionally, the company said it aims to invest approximately €10 million (~$10.7 million) in the industrialization of eROCKIT products, which could help Motovolt expand its offerings and enhance the quality of its electric mobility solutions.

Mercom India recently organized the C&I Clean Energy Meet 2023 in Bengaluru, which hosted industry experts who provided insights on the lending options available to consumers interested in financing their clean energy endeavors and the key asepcts businesses must consider when seeking funding for their solar projects. The session “Innovative Financing Solutions – Ways to Access Cheap Loans” included participants – Anand Jain, Founder & CEO at Aerem; Harsha Kuntur, Managing Director at EcoSoch Solar; Bhargav Adithya, Regional Manager – Finance at Tata Power; and Nakul Kukreja, Chief Manager at ICICI Bank.

Battery manufacturer LG Energy Solution plans to invest roughly KRW 7.2 trillion (~$5.5 billion) to build a battery manufacturing complex in Arizona, United States. The current investment is more than four times the amount LG had initially announced last year to manufacture cylindrical EV batteries in the same location. The company’s decision to increase investment in cylindrical EV battery production in North America comes from rising demand from EV makers for locally manufactured high-quality, high-performance batteries to satisfy the Inflation Reduction Act’s EV tax credits.

The European Investment Bank has agreed to lend €450 million (~$485 million) to Portugal-based energy sector company Redes Energéticas Nacionais (REN) for renewable energy connections and upgradation of the transmission network. This financing will contribute to REN’s five-year investment program, which aims to increase the efficiency of Portugal’s electricity transmission network to integrate 4.2 GW of new renewable energy sources by 2026. It would also enable REN to maintain the reliability and quality of the electricity supply.


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