Mitsui Group said to be looking for a role in India’s clean energy story

Taking a cue from JERA Co. Inc., Japan’s Mitsui Group is looking at investments in India’s clean energy sector.

Interest from one of Japan’s largest corporates in India’s renewable energy play comes in the backdrop of India courting investments for its clean energy sector.

India has witnessed record low solar and wind tariffs due to falling equipment prices and the lower cost of raising finances. This in turn has put the focus on so-called patient capital, which seeks modest yields over time.

Experts say the Japanese investments fit the bill and are natural to follow given the relationship between the two countries. They add that Japanese companies can play an important role given their access to the best technology, cheaper and soft loans.

“Japanese investors such as Mitsui Group want to follow JERA into India,” said a person familiar with the matter on condition of anonymity.

“They are showing interest in investing in the existing players. This also complements the sector given that there is a requirement for Japanese growth capital.”

JERA Co. Inc., an equal joint venture between Japan’s largest utility Tokyo Electric Power Co. and Chubu Electric Power Co. last month bought a 10% stake in ReNew Power Ventures Pvt. Ltd for $200 million.

Mizuho Financial Group, which has been tasked by the Japanese government to find investment opportunities in India, has identified sectors such as electronics, automobiles, energy, transportation and social infrastructure for a focused investing approach as reported.

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