Key facts
- Chubu Electric Power will invest approximately $150 million for a 13-14% stake in Continuum Green Energy.
- The deal values Continuum Green Energy at $1.1-1.2 billion.
- Continuum Green Energy has a renewable energy portfolio of approximately 4.7 GW.
- Chubu Electric has been increasing its investments in India's renewable energy sector.
- Continuum Green Energy supplies renewable power to commercial and industrial customers.
Japan's Chubu Electric Power is poised to acquire a significant minority stake in India's renewable energy company Continuum Green Energy for approximately $150 million. This strategic investment will grant Chubu a stake of around 13-14%, valuing Continuum at an estimated $1.1 to $1.2 billion. The deal is anticipated to be announced within the week.
Continuum Green Energy, founded in 2009, specializes in supplying renewable power to commercial and industrial clients through its diverse portfolio of wind, solar, and hybrid assets. The company has developed a substantial renewable energy capacity of approximately 4.7 GW, with a portion already operational, under construction, and in development. Continuum had previously postponed its initial public offering (IPO) despite securing approval from India's Securities and Exchange Board of India (SEBI).
This investment underscores Chubu Electric's commitment to expanding its presence in India's rapidly growing clean energy market. The Japanese utility has been actively increasing its footprint in India, having previously invested in OMC Power, a developer of solar-powered mini-grids, and subsequently increasing its stake to 35% in 2024. Chubu itself operates a diversified generation portfolio and has committed significant capital towards global decarbonisation initiatives.
Continuum has consistently attracted capital from climate-focused investors, including Just Climate, which invested $67.5 million in March and $150 million in 2024. A Fitch Ratings report highlighted that a substantial portion of Continuum's projects' offtake is secured by commercial and industrial customers and SECI, known for their reliable payment records compared to state-owned power distribution utilities.