BII partners with CIP to launch $300M India renewable energy fund

British International Investment (BII), the UK’s development finance institution and impact investor, and Copenhagen Infrastructure Partners (CIP) have launched North Star, a $300 million renewable energy platform in India aimed at accelerating the country’s clean energy transition and addressing critical climate financing gaps.

Under the partnership, BII and CIP’s Growth Markets Fund II (GMF II) will each commit up to $150 million. The platform will invest in solar, wind, hybrid renewable energy, and energy storage projects across India, with the projects expected to generate more than 4 million MWh of clean energy annually and help avoid nearly 4 million tonnes of carbon emissions every year.

The initiative marks the first investment under British Climate Partners (BCP), BII’s £1.1 billion climate finance programme launched last month as part of its new five-year strategy. BCP has been designed to mobilise institutional capital into climate-focused infrastructure and energy transition projects across fast-growing and coal-dependent economies in Asia, including India, Indonesia, Vietnam, and the Philippines.

India was selected as the first investment market under the programme due to its ambitious renewable energy goals and large financing requirements. The country has set a target of achieving 500 GW of installed renewable energy capacity by 2030 and net-zero emissions by 2070. However, estimates suggest India requires at least $160 billion annually in climate financing through the end of the decade to meet these targets.

According to BII and CIP, although renewable energy tenders in India have expanded significantly, many developers continue to face constraints related to capital availability and project development capabilities. North Star has been structured to bridge this gap by supporting projects through development, construction, and operational stages while also attracting additional private investment into the sector.

BII said the launch builds on its previous experience in India’s renewable energy market, including its 2018 investment in Ayana Renewable Power, which was later sold at an enterprise value of $2.3 billion after attracting significant private capital participation.