Juniper Green Energy forges Rs 8,000 crore partnership with Gujarat government for 1GW, RE venture

New Delhi: In a declaration of intent to boost India's renewable energy landscape, Juniper Green Energy, a known player in the sector, has inked a landmark Memorandum of Understanding (MOU) with the Gujarat government during the Investment Promotion Activity at the Vibrant Gujarat Summit 2024. This agreement, announced on Thursday through a company statement, encompasses an ambitious collaboration to establish a monumental 1 gigawatt (GW) of wind and solar projects within the state.

The MOU signifies not just a financial commitment but also a significant stride towards sustainable energy generation, with an investment of Rs 8,000 crore earmarked for these projects. The signing ceremony, on January 3, 2024, at Gandhinagar, Gujarat, underscored Juniper Green Energy's dedication to fortifying India's renewable energy infrastructure.

At the heart of this collaboration lies a commitment not only to advancing clean energy solutions but also to boosting the socio-economic fabric of the region. The proposed venture is anticipated to generate approximately 1,500 jobs and to contribute meaningfully to the local socio-economic development of Gujarat.

Speaking on this occasion, Naresh Mansukhani, the CEO of Juniper Green Energy, expressed enthusiasm, stating, "We are thrilled to partner with the government of Gujarat in this monumental venture. This MOU is a testament to our shared commitment to a sustainable and prosperous future."

Juniper Green Energy, a subsidiary of the AT Group, has an extensive portfolio within the renewable energy domain, with a valuation of approximately $2.4 billion. The group has been at the forefront of building utility-scale renewable energy projects in India since 2010 and has previously spearheaded projects like Orange Renewable, a 1GW renewable energy platform.

Established in Delhi NCR in October 2018, Juniper Green Energy has witnessed growth, currently operating an operational portfolio of about 800 megawatts (MW). Additionally, the company has over 500MW under construction and a developmental pipeline exceeding 3GW, inclusive of solar, wind, and hybrid projects. The company's internal capabilities span the entire spectrum, encompassing Engineering, Procurement, and Construction (EPC) as well as Operations and Maintenance (O&M) services for its renewable projects.

This isn't Juniper Green Energy's first collaboration in Gujarat. In August 2023, the company inked an initial pact with the state government to develop 1GW of wind and solar projects, representing an equivalent investment of Rs 8,000 crore, a precursor to the current milestone agreement.

Moreover, Juniper Green Energy's recent alliance with Suzlon Energy Ltd. for a 50.4MW wind power project in Dwarka district, Gujarat, further cements its dedication to expanding renewable energy initiatives. The project, slated for commissioning in 2025, will feature 16 wind turbine generators, each boasting a rated capacity of 3.15MW. Suzlon Energy Ltd. will oversee project execution, including erection and commissioning, and provide comprehensive post-commissioning operations and maintenance services.

Last year the market responded positively to this collaboration, as Suzlon Energy Ltd.’s shares surged by 2.96% to Rs 32.40 at 12.02 pm on the Bombay Stock Exchange (BSE), indicating investor optimism and confidence in the prospects of both companies within the renewable energy sector. This collaboration sets a precedent for similar ventures aimed at accelerating India's transition towards sustainable and green energy solutions.

The renewable energy sector in India has witnessed a substantial uptick, with a notable increase in renewable energy (RE) generation. Starting at 17,735.38 million units (MU) at the onset of 2023, the figures soared to 20,713.42 MU by June of the same year, marking a remarkable surge of 16.79 per cent within just six months.

This impressive escalation owes itself in part to the implementation of impactful strategies, notably the Renewable Purchase Obligations (RPO). These obligations mandate Distribution Companies (DISCOMs) and various entities to procure a set percentage of their energy from renewable sources. Additionally, the utilization of Renewable Energy Certificates (RECs) has played a pivotal role in offering procurement flexibility, both in terms of time and cost, enabling obligated entities to showcase compliance with RPO requirements.

The synergy between RECs and the broader renewable energy market has been evident. However, to further propel India's RE market, there is an urgent need for policy support aimed at bolstering the demand for RECs. This support will not only fortify the REC framework but also stimulate increased participation, subsequently amplifying the momentum of the entire renewable energy sector within the country.