New Delhi: US-based renewable energy (RE) company Enfinity Global Inc. on Thursday announced that it has signed a deal for $135 million in financing for the development and construction of 1.2 GW of solar and wind projects in India.

The financing is being provided by Canada Pension Plan Investment Board (CPP Investments) through subsidiaries of CPPIB Credit Investments Inc., said a company statement.

It added that the projects in this portfolio, spread across five states—Maharashtra, Delhi, Karnataka, Rajasthan and Uttar Pradesh—and, they are are in advanced stages of development and are expected to be commissioned between 2025 and 2026. Once interconnected, they are projected to generate 2.4 GWh of clean electricity annually, enough to power over 2 million Indian homes and offset 2.6 million tonne of CO2 emissions, according to the statement.

Renewable energy is at the core of India’s economic growth plans as a key driver of competitiveness. Enfinity Global is delighted to partner with CPP Investments, one of the most respected global investors, in bringing clean energy to power India’s future,” said Carlos Domenech, CEO of Enfinity Global.

“Solar and wind power are two vital renewable energy sources and India offers a strong pipeline for such opportunities. We are pleased to partner with Enfinity Global on these projects by providing long-term and flexible capital that we believe will provide a promising source of long-term returns for the CPP Fund,” said Geoffrey Souter, managing director, head of Real Assets Credit at CPP Investments.

Enfinity currently owns and operates a portfolio of 240 MW solar plants in India, with over 1.5 GW under development. Over the next three years, it plans to develop and commission renewable power plants to supply over 5 GWh of clean electricity annually, including through power purchase agreements (PPA). Enfinity also intends to diversify its business to deliver other net-zero solutions for the Indian and global market through energy storage, hybrid renewable energy production, green ammonia, water treatment, and other emerging circular economy technologies, the statement said.

EY was the exclusive M&A investment banker representing Enfinity Global on the transaction.

Commenting on the deal, Srishti Ahuja, investment banking partner  for energy transition and infrastructure at EY, said, “The transaction has unique contours, that perfectly align interests of a global asset sponsor and a long term financial investor. Given the expected roll out of large number of renewable tenders post elections, this was a perfect time for the two players to come together.”

Established in 2019, Enfinity Global Inc. owns a portfolio of 22.4 GW of renewable energy and storage projects, including operational assets, under construction, and in different stages of development globally.