CLP India

India has committed to significantly expand renewable energy as a signatory of the Paris Agreement, making it a commitment to deliver ‘power for all’. In 2018, CEO of CLP India, Rajiv Mishra, announced that the company would only invest in renewable energy, transmission and distribution going forward. In December 2018, CDPQ acquired a 40% stake in CLP India for a total cash consideration of INR 26.4 billion. CLP Holdings holds the remaining 60% stake in CLP India. Since CDPQ’s investment, CLP India has committed CAD 330 million in equity for transmission and renewable projects.

The investment is aligned with CLP and CDPQ’s goals to pursue a low-carbon growth strategy focused on investment in renewable generation and innovative business models. New project development aids India in reducing its carbon intensity, supporting the country’s commitments under the Paris Climate Agreement. Under CLP India’s Corporate Social Responsibility (CSR) policy, the company undertakes programs for improving public health and community education.

CLP India started as a power generation company in India in 2002 after acquiring the 655 MW gas powered Paguthan Combined Cycle Power Plant in Gujarat. Until 2018, the company was a wholly-owned subsidiary of Hong Kong-based CLP Holdings Limited. CLP is one of the largest investors in mainland China’s renewable generation sector. EnergyAustralia, one of Australia’s largest integrated electricity and gas companies is a wholly-owned subsidiary of the CLP Group. CLP Power Hong Kong supplies electricity to 80% of Hong Kong’s population. CLP Group is first Asian-headquartered power company to set carbon intensity reduction targets for its generation portfolio.

In 2018, CLP India decided to stop growing their conventional portfolio and increase their renewable generating capacity in addition to exploring opportunities in transmission, distribution and other customer-facing utilities. Caisse de dépôt et placement du Québec (CDPQ) is an institutional investor that manages public pension plans and insurance programs in Quebec, Canada. As of 2020, the company’s assets under management are over CAD 325 billion in value. CDPQ has a target to increase their low-carbon investments from CAD 18 billion in 2017 to CAD 32 billion. The company also seeks to reduce the carbon intensity of their portfolio by 50% between 2017 and 2050.

Considering the synergies between the sustainability goals of CLP Group, CDPQ and CLP India, CDPQ acquired 40% of CLP India from CLP Group in September 2018. Since CDPQ’s investment, CLP India has committed CAD 330 million in equity towards various transmission and renewable generation projects. The investment provides the necessary financial support for CLP India, CLP Group and CDPQ to decarbonize, while further aligning CLP India’s operations with India’s commitments under the Paris Climate Agreement.

Key Benefits

Benefits to the environment

CLP India’s portfolio diversification reduces the carbon intensity of the company and its two shareholders CLP Holdings and CDPQ. The move also supports India’s decarbonization and renewable energy targets under the Paris Climate Agreement.

Sustainable cities and communities, Access to healthcare and Gender equality

• CLP India constructed a 50-bed secondary healthcare facility to serve villages near their Jhajjar power station and transferred the ownership to the state government in 2017. The company also conducts health check-ups and eyesight correction camps at local schools
• Under the company’s health outreach program, mobile clinics offer doorstep services for over 58,000 people in 55 villages
• CLP India in association with Hindustan Latex Family Planning Promotion Trust provides doorstep services to address adolescent girls’ health and maternal and child health in the state of Rajasthan. The program is expected to benefit 2,910 women and girls. The company also conducts maternal and child health awareness programs in ten villages
• Under their healthcare programs, CLP India supports 85 children with special needs, 46 children affected by HIV and 40 multidrug-resistant tuberculosis patients with counselling, guidance and nutritional supplements
• Through various CSR programs, CLP India supports livelihoods for over 800 women across Indian states. Self-help groups brought together through the programs support micro-credit societies that finance local businesses owned by women

Industry and Innovation

CLP India is a part of Confederation of Indian Industry (CII)’s think tank on power. CII is one of the largest industry associations in India with 9,307 members in 2019. The think tank makes key policy recommendations on the power sector. In 2019, the group stated that INR 5 trillion of investment will be required in the next five years to meet the energy needs of the country’s envisioned INR 5 trillion economy.

Zero Hunger

The Midday Meal Scheme is a school meal programme by the Government of India designed to improve nutrition for school-age children. CLP supports mid-day meals for 5,000 children enrolled in 27 government schools in Karnataka State. The company also supports development of sports infrastructure at local schools and developed a Wrestling Academy for 68 students including 10 women.

Water & Sanitation

The company constructed 25 rain water harvesting tanks at one of their windfarm sites. The company’s watershed management program is delivering construction and rehabilitation of water infrastructure impacting 17,644 individuals in 15 villages. The company’s sanitation initiatives have benefited 3,200 individuals and 520 school children across their sites.

Agriculture

CLP India’s horticulture subsidy program in its second year enabled 7 farmers to undertake alternative farming by planting 10 fruit-bearing plant varieties of total 2,304 saplings. Over 11,500 cattle have been examined, treated and administered vaccination under CLP India’s animal health check-up initiatives.