Impact Fund Denmark is investing USD 50 million (around DKK 320.5 million) in Radiance Renewables Pvt Ltd through the Danish SDG Investment Fund II, supported by five Danish pension funds. This investment, made alongside a USD 50 million contribution from the Dutch Development Finance Institution FMO, is expected to catalyse an additional USD 300 million in private sector debt, enabling Radiance to build and operate 926 MW of new solar power across India. Radiance is a key player in India’s clean energy transition, providing renewable energy to commercial and industrial clients at prices 15–20 percent lower than grid electricity. With roughly 70 percent of India’s grid power still generated from coal, the company offers both cost savings and a greener energy profile for businesses.
India aims to generate 500 GW of renewable energy by 2030, but faces a significant capital gap to reach this target. Rapidly growing energy demand from the country’s expanding middle class makes investments in renewable energy both urgent and commercially viable. Radiance has demonstrated strong growth and scalability, expanding its operational solar capacity from 38 MW to nearly 600 MW in just four years.
Thomas Hougaard, Managing Director and Co-Head of Green Energy & Infrastructure at Impact Fund Denmark, noted that India’s unified market of 1.5 billion people, supported by federal and state regulations promoting renewable energy, provides significant opportunities for scalable green solutions, making it an attractive destination for investment.
The investment is designed to deliver attractive, risk-adjusted returns for private investors while catalysing additional private capital and accelerating India’s green energy transition. It is covered by a guarantee from the European Union under the European Fund for Sustainable Development Plus framework. The closing of the investment is subject to fulfilment of regulatory approvals and other closing deliverables.
