Indian power producer ReNew Energy Global has entered a memorandum of understanding (MOU) worth more than $5.3bn (Rs441.83bn) with the Asian Development Bank (ADB) to support decarbonisation and climate change mitigation projects.

The MOU was signed at the COP28 summit in Dubai and will be valid from 2023 to 2028.

Potential investments across renewable energy, manufacturing, carbon offset and green hydrogen have been identified under the MOU.

It is a first-of-its-kind for the Indian renewable energy sector and should attract the interest of other international investors.

It reaffirms ReNew’s position as a renewables leader in India and helps ADB reach its target of funding $100bn in green energy projects by 2030.

ReNew founder, chairman and CEO Sumant Sinha stated: “Today’s agreement marks an exciting time for ReNew. Significant financing is needed to reach global climate targets and this agreement helps secure the capital needed.

“We look forward to collaborating with the Asian Development Bank over the coming years to meet India’s target of achieving 500GW of renewable capacity by 2030.”

ADB private sector operations director-general Suzanne Gaboury stated: “This collaboration between ADB and ReNew envisages the continued cooperation of both organisations over the next five years by providing a framework for working together towards shared goals and to deliver on the results envisioned in combatting climate change.”

At the end of September 2023, ReNew’s clean energy portfolio was almost 13.8GW.

It has already invested around $8bn in clean energy projects and can raise funding to further expand its portfolio with this MOU.

ADB recently reached an agreement with the Indonesian Government and Cirebon Electric Power to retire a coal-fired power plant seven years before its closure was originally scheduled.

The agreement is part of the multilateral financial institution’s Energy Transition Mechanism programme.