Performance Highlights


Delivering VALUE –
Purpose & Principles

Creation of Sustainable Value

Performance Based
Value Creation



Financial Capital

The flexibility and robustness of our projects are attributed to the customized SOP’s which are designed to address the real-time operational challenges enabling us to deliver uninterrupted services. The vendor partners resonate well with our sustainability focus as demonstrated by their deep understanding of our business challenges getting reflected into robust contract completion mechanisms. Our instruments like green bonds have augmented in financing green projects while maintaining the fixed income for stakeholders.

- Selva H Thiraviam


Strategic Approach

Greenko’s core business strategy has been to focus on decarbonization, digitalization, and decentralization of the energy sector. To this end, it intends to transform its business models from Greenko (GKO) 2.0 – which involved decarbonization intending to increase renewable energy penetration, making renewables more competitive, and integrating renewable energy into the grid – to GKO 3.0, which involves digitalization with a focus on promoting RTC renewable energy. Following this, Greenko aims to move on to GKO 4.0, involving decentralization, Transitioning to Zero carbon molecules , Investments in new business models along the energy value chain, including customized Green Hydrogen and ammonia solutions, Electrolyser technologies, Creation of energy networks, and Network management.

Financial planning and Analysis is a crucial aspect for any organization, more so in the year of the pandemic. A strong internal structure to assess and mitigate risks, follow up due diligence, legal compliance and appropriate safeguards for credit has allowed Greenko to emerge unscathed during FY 2020-21.

- Venkateswarlu Tedla

Senior Vice President - Project Finance

Journey so far

Greenko has performed well in the current reporting period, by consistently developing and reinforcing financial strength in line with its strategic approaches viz., pursuing revenue growth, organic and inorganic growth, enhancing debt capacity, and access to capital.

In FY 20-21, Greenko has increased installed capacity to 7.5 GW, thus scaling up the installed generation portfolio. This scale of expansion was achieved by acquiring nearly 0.95 GW of the renewable assets in FY 20-21.

Currently, at the GKO 3.0 stage, Greenko anticipates significant investments in IRESPs to achieve RTC renewable energy. In this stage, the company has continued to focus on investments in the O&M of its assets through digitalization. In July 2020, Greenko and ONYX InSight signed an agreement to retrofit and modernize 500 wind turbines for efficient data collection and analysis. Greenko is also active in the open-access space (B2B segment). In 2020--21, the company sold 7.19% of the power generated through this route. Dealing with energy customers directly is a step towards transitioning to decentralization and is also the focus of GKO 4.0.

Be it organic and inorganic growth, diversification in sourcing finance and investments, new business strategies, and investment in IRESPs to diversify its project portfolio, Greenko has tried to evolve itself continuously and adapt to changing business dynamics. In FY 20-21, the Group’s growth has been affected by the ongoing Covid-19 pandemic and competition from the increasing number of players in the renewable energy sector. Despite these challenges, however, Greenko is still strongly positioned in the country’s renewable energy sector.

Diversified Source of Funds

Greenko has maintained a good credit rating and has thereby, remained highly attractive to potential investors. It has been able to tap diverse sources of funds and has positioned itself among the top three renewable energy generators in India. Greenko has a well-diversified source of revenue – diversified renewable generation technologies and diversified PPA structures, including (i) Feed-in tariffs, (ii) APPC Tariffs, and (iii) Third-party direct sales.

Diversified source and renewable technologies

Diverse PPA Structures

The different generation technologies help to peak generation in different seasons of the year. The diversity of PPAs and the types of customers served due to the reduction of regulatory and payment risks have ensured continuous cash flow for operational projects. Further, due to the different capital avenues that Greenko accesses, it can raise finance at competitive terms.

Overview of Financial Performance

Greenko anticipates to achieve 50% EBITDA from the clean energy services and technology business solutions combined.

The Group has come up with a full build-out plan until FY 2024-25 which is presented below:

Greenko’s financial growth plan – FY 2024-25
Credit ratings

Credit Analysis and Research Limited (CARE) for Indian debt instruments gave Greenko A+(CE) rating for FY 20-21

Moody’s upgraded Greenko Dutch to BA1 reflecting its standalone credit quality and a two-notch

Fitch upgraded Greenko Energy credit rating to ‘BB with stable outlook’ as June 2020

CRISIL upgraded Greenko credit rating to ‘BBB’ for FY 20-21

India Ratings and Research awarded Greenko ‘IND AA+(CE)’ for FY 20-21

Sustainable Financing through Green Bonds

Green bonds are fixed-income financial instruments. The issuer of these bonds gets the capital to finance green projects while investors receive fixed income via interests. Green bonds raise funds for new and existing projects which deliver environmental benefits, and a more sustainable economy.

Greenko has so far raised around $4.5 billion through foreign and domestic green bond issues. The funds are diligently deployed as per the use of proceeds specified and follow the process for evaluation and selection. Greenko ensures that impact assessment and allocation reporting obligations are being fulfilled as required by the green bond framework.

Greenko is well aware of the importance of ESG factors when it comes to financing. The company believes in financing projects that respect certain environmental criteria.

  • In November 2017, Greenko raised Rs 30 billion through the sale of onshore rupee- denominated bonds which will mature in 2027.

  • In July 2019, Greenko Energy Holdings raised $950 million through green bonds. The issue was oversubscribed by over three times and was one of the largest green bond issues by a renewable energy company.

  • In March 2020, Greenko has raised $940 million through the green bond issue priced at 3.85%. The bond was rated ‘Ba1’ by Moody’s Investors Service. The demand for the bond exceeded $2.5 billion and the proceeds from the bond sale are to be used for refinancing existing debt facilities.

Sustainable Financial Partnerships

Greenko believes sustainable development goals can only be achieved through partnerships. Greenko Energies Pvt Ltd (Greenko) and NVVN have entered into an MOU with an intent to explore the possibility of the development of Renewable Energy (RE) based RTC, flexible and dispatchable power supply offering based on the integration of RE sources and Pumped Storage projects.

In March 2019, Greenko signed an agreement with Siemens Financial Services (SFS), the financing arm of Siemens AG, for an equity investment in its 200 MW Poovani Wind Power project in Tamil Nadu. As per the agreement, SFS has agreed to take a 46 % equity stake.

Greenko has received equity from GIC and the Abu Dhabi Investment Authority, both key stakeholders in the company. In September 2020, ORIX invested $980 million in Greenko Energy Holdings. With this investment, ORIX has a 21.8 % stake in Greenko. ORIX has integrated its existing wind energy business with Greenko, which includes projects with a cumulative capacity of 873 MW.

Calibrated Inorganic Growth

Greenko’s inorganic growth is guided by getting the right stakeholders involved at the right time.

In November 2016, the Group acquired SunEdison’s 587 MW wind and solar portfolio in India for $42 million and debt of $350 million. During 2017-18, Greenko acquired 100% of the shares and voting interests in Karvy Solar Power Limited, New Era Enviro Ventures (Mahbubnagar) Private Limited, Premier Photovoltaic Medak Private Limited, Pennar Renewables Private Limited, Proeco Energy Private Limited, Saimeg Infrastructure (Mahbubnagar) Private Limited and Sharp Cleantech Infra Private Limited, from different developers

After these successful acquisitions, in October 2018, Greenko acquired 385 MW of wind power projects from Skeiron Green Renewables at an enterprise value of about $0.5 billion. During the same month, it also acquired Orange Renewables for approximately $1.02 billion, which included $680 million of debt. The equity infusion in the transaction was approximately $340 million. Greenko took over 907 MW of operational solar and wind projects from Orange Renewables and over 500 MW of under-development assets.

Post merger or acquisition integration is very swiftly and sensitively managed. The finance, operations and human resources are seamlessly integrated in all instances till date. In most instances mergers have delivered accretion of value .

Circular and Regenerative Approach

The organization aims to harness overall organic and inorganic growth by embracing circular and regenerative thinking as a way of business.

Greenko’s Integrated Renewable Energy Project, which is designed to address the inherent infirmity of wind and solar energy by employing the innovative solutions of Pumped Storage Plant (PSP), is an important component of our circular approach. These projects are designed as sharing platforms of storage and other electricity system services.

Under the circularity and regenerative thinking approach, Greenko aspires to explore and employ innovative ideas and action plans, such as ‘invest-generate-and-Consume’, ‘harness increasing electrification’, ‘solutions to non-electric use sectors’. - which are adjacencies to the present business

Managing Climate Change Impacts – Risks and Opportunities

Greenko’s three pillars- Renewable Energy, Storage and Zero Carbon Molecules are building blocks of transition towards a low carbon economy and to meet the target of restricting the average global temperature rise to 2°C and further ambition Paris Climate Agreement to limit the global warming to 1.5 degrees, to minimize the catastrophic impacts of climate change . However, like every other sector, the renewable energy sector is also susceptible to the impacts of climate change as the entire supply chain of the renewable energy system is significantly vulnerable to climate variability.

Physical Climate Risks

Greenko’s assets face the physical risks of climate change such as extreme weather events which can range from droughts to tropical storms. The physical risks have the potential to directly damage the organization’s assets and indirectly disrupt the supply chain due to the impact on production facilities, sales, and workforce.

The electricity production potential of renewable energy is critically impacted by the physical risks of climate change, due to its dependence on climate conditions. A shift in climatic conditions resulting in temperature extremes, heat waves, extreme changes in precipitation leading to flooding and drought, sea-level rise, etc. have the potential to adversely affect the generation and transmission infrastructure of Greenko as well as the asset’s productivity.

Transition Climate Risks

The transition risks of climate change are the risks that could arise from the process of adjusting to a low carbon economy such as changes in policy, technology, market, and reputation.

Regulatory Risks

In the drive for deep decarbonization and tackling the adverse effects of climate change, India will have to reform the energy policy ecosystem and Greenko looks at these upcoming changes in public policy as an opportunity. To be on the top of these evolving policies, Greenko continuously engages with regulatory processes through proactive participation in discussions and public policy advocacy with both National and Local regulatory bodies viz., MoP, MNRE, MOEFCC, and CERC providing constructive feedback regarding policies and regulations.

Technology Risks

Climate change will drive the demand for RE, storage systems, and zero carbon commodities and services including transportation. While R&D will advance the possibilities, increased application of innovative methods will bring down prices. The relative costs of alternatives in storage, carbon capture and utilisation and hydrogen and other zero carbon molecules, with similar or overlapping functional capabilities are and will be evolving. Significant technology action leading low or zero carbon pathways is likely to happen during this decade. Greenko is in a position to mitigate these risks through its diverse portfolios of technology options and the proposed business model of zero-carbon molecules.

Market Risks

Along with increasing the power consumption from renewable energy sources, consumers are also becoming aware of the need to reduce energy consumption and are keen on making a shift towards an energy-efficient and low carbon lifestyle. In addition, climate changes will alter energy demand patterns across geographies and times. This would eventually lead to a risk of reduced demand and uncertainty in the market, causing an increase in operating costs. Greenko plans to mitigate this transition risk through the IRESP model that would enable in delivering firm, reliable, on-demand power.

Reputational Risks

The growing complexity of the electricity system and the increased frequency and seriousness of adverse climatic events requires constant monitoring of assets for ensuring optimum performance. The occurrence of malfunctions, potentially of a widespread nature, could increase Greenko’s reputational exposure to public authorities and stakeholders in general. Greenko mitigates this risk by constantly monitoring its operational performance.

Looking Ahead

Greenko believes in creating shared value for all its stakeholders. The company focuses on its core business strategies and activities. This enables the company to achieve business objectives. It focuses on decarbonization, digitalization, and decentralization of the energy sector. The Group plans to do so by responsible investing and building long-term sustainable partnerships to gain sustainable returns (financial and socio-environmental).

Greenko plans to transition from 2.0 to 3.0 This involves decarbonization with the aim of increasing renewable energy penetration, making renewables more competitive and integrating renewable energy into the grid

It further plans to move forward from 3.0 to 4.0. The stage 3.0 involves digitalization with a focus on promoting RTC renewable energy

Greenko further plans to move to its last stage 4.0 This involves decentralization, Transitioning to Zero carbon molecules, Investments in new business models along the energy value chain, including: Consumer focused Green Hydrogen and ammonia solutions, Electrolyser technologies, Creation of energy networks Network management.

Greenko has an operational portfolio of ~7.5 GW and pipeline of ~15 GW in Wind, Solar, Hydro and Energy Storage assets spread across 15 states in India. Further, its plans for Zero Carbon Molecules also are aggressive. Accordingly, the company looks forward to invest 20 billion USD in the next 3-5 years in the pursuit of energy transition interventions crafted for India.

To actualise Greenko’s ambitious plans it will widen its investor base, tap into responsible/green/climate/ESG finance, focus on risk management and governance. While its efforts on cost optimization at every stage has to be pursued, through policy advocacy it has to monetise multiple values that its business delivers. Greenko believes that through right technological choices at right times, the leaders of energy transition will be distinguished.