Smart Finances: SSE Sustainability RCF & $50m for Genus Power

In this week's Smart Energy Finances, Indian smart meter manufacturer Genus Power receives a $49.5 million investment from the US International Development Finance Corp. and British utility SSEN Transmission has opened its first sustainability-linked revolving credit facility.

Also on the radar are announcements from Siemens Gamesa of a wind divestment and Siemens Limited, which is expanding its global portfolio via an Indian acquisition.

Smart meter maker Genus Power Infrastructures has received $49.5 million from the US International Development Finance Corporation, according to Times of India reportage.

The funding will be used to scale up their capacity to manufacture new smart meters, the company's managing director Jitendra Kumar Agarwal told the Press Trust of India.

"Genus has partnered with the US International Development of Finance Corporation for an initial commitment of $49.5 million loan to scale up the deployment of electric smart meters across India, supporting energy security and transition through grid optimisation and efficiency."

The announcement comes as the country has been making several moves to advance the digitalisation of its infrastructure, namely through smart metering initiatives and policy.

The government's Revamped Distribution Sector Scheme (RDSS) in particular has seen several announcements of smart metering rollout, one such being IntelliSmart's contract for 6.7 million smart meters, which they state to be the largest order to date the country has seen.

Said Agarwal:

"With this partnership…Genus is well poised to become a leading player in the AMISP (Advanced Metering Infrastructure Service Provider) market. Smart metering projects under the RDSS will not only reduce technical and commercial losses exceeding 15% for all major Indian utilities leading to high financial losses, but also improve operations efficiency of DISCOMs and improve their financial health by providing results linked financial assistance.

Genus Power Infrastructures, which has operations in smart metering, smart city and smart grid technologies, forms part of the Kailash Group.

British utility SSEN Transmission has signed its first ever sustainability-linked Revolving Credit Facility (RCF), valued at £750 million ($926.4 million), which includes four key performance indicators:

The north of Scotland's electricity transmission network, states the electric utility, has a major role to play in supporting the delivery of Scotland and the UK's 2030 climate change targets.

SSEN Transmission has ambitious plans to invest more than £10 billion ($12.3 billion) in its network in the decade to 2030, to enable the delivery of more renewable energy to the UK grid. 

In 2019, SSEN Transmission was the UK's first electricity networks company to have its GHG emissions target externally validated by the Science Based Targets Initiative (SBTi), in line with a 1.5°C global warming pathway.

Grupo Daniel Alonso, owner of 68% of Spain-based wind tower manufacturer Windar Renovables, and Siemens Gamesa, which owns the remaining 32%, have reached an agreement to sell Windar to Bridgepoint, a British private investment company.

Details on the purchase price and structure have not been released.

"The sale of Siemens Gamesa's stake in Windar is a natural decision for us, as part of our strategy to focus on our core business: wind turbine design, manufacturing including blades, installation and maintenance," said Jochen Eickholt, Siemens Gamesa's CEO.

Orlando Alonso will continue as President and CEO of Windar and will retain an indirect minority stake in the company.

The closing of the transaction is expected to take place before year end. Final transaction closing is subject to customary regulatory approvals.

Earlier this year Siemens Energy, according to Bloomberg reportage, Siemens Energy, which owns a 97.79% stock in Siemens Gamesa, opened its first green bond of €1.5 billion euros ($1.6 billion) to re-finance Siemens Gamesa debt.

Siemens Gamesa ended a challenging fiscal year 2022 with what they called "record backlog". The company had to cut 2,900 jobs in a pitch to boost profitability, which included a Mistral strategy programme to restructure their operating model, a strategy which came into effect in January this year.

Also from Smart Energy Finances:Eni's €2.2bn share buyback programme and grid smartening for investmentsItalgas growth and smart electric meter market snapshot

Siemens has confirmed the acquisition of Mass-Tech Controls’ EV division, aiming to expand the German giants’ range of e-mobility solutions in the country and expand its global portfolio.

Siemens Limited signed an agreement to acquire the division, which is engaged in design, engineering and manufacturing of a wide range of AC chargers, and 30 to 300kW capacity DC chargers for various end applications for EVs.

The cost of the acquisition is approximately €4.3 million ($4.6 million) on a cash free and debt free basis and subject to other adjustments agreed to between the parties.

While Siemens has been active globally in the e-mobility infrastructure space for more than a decade, this addition is hoped to complete Siemens India's portfolio of e-mobility solutions and address the needs of the Indian market, which they state has unique requirements such as lower power rating and parallel charging.

"The fast-evolving e-mobility infrastructure market in India is important for Siemens due to its high growth potential. The enhanced portfolio will enable Siemens to meet market requirements such as homologation and local value-add with cost-competitive solutions. With this acquisition, we now have a strong platform to address our customers’ needs with locally designed and produced products," said Markus Mildner, CEO of eMobility at Siemens Smart Infrastructure.

Closing of the acquisition is subject to fulfilment of condition precedents as agreed between the parties and receipt of requisite regulatory, statutory and other approvals.

Post the acquisition, the EV division of Mass-Tech Controls will be fully integrated into the e-Mobility Business Unit of the Smart Infrastructure Business, Siemens Limited.

Encouraged by the FAME-II policy of the Government of India and electric vehicle policies notified by various state governments, the electric vehicle market in India is in the midst of a transformation.

For the latest in finance and investment announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

I will also be attending European Sustainable Energy Week – will I see you there?

Cheers,Yusuf LatiefContent Producer, Smart Energy International

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