Within the next three to four years, the Canadian investor intends to treble the amount it now invests in the nation’s renewable energy sector.
Canada’s Brookfield Asset Management recently announced that it intends to increase its investments in India’s renewable energy industry. The investment is expected to surpass $10 billion through a redesigned fund in the upcoming three to four years.
For the investment, known as BGTF II, the company is establishing a second fund. As of February 2024, the fund had achieved a first close of $10 billion. It has already made $15 billion in investments in India’s renewable energy sector from its fully deployed Brookfield Global Transition Fund (BGTF I). Ten percent or so of BGTF I has been invested in India, and BGTF II will be further deployed there in the future.
As previously announced, the corporation is looking into acquisitions in this industry and is investigating potential related to green hydrogen and electric cars (EVs).
According to Brookfield, its primary focus is on advancements within the nation’s electric vehicle charging industry. Their new transition fund seeks to provide capital for corporate transformation and the adoption of sustainable solutions that go beyond renewable energy sources. Infrastructure for EV charging, carbon capture technologies, electric cars, and other relevant advances will all be included in the solutions.
The business has also disclosed that it is willing to investigate cooperative partnerships in the Indian electric vehicle market.
Securing appropriate long-term contracts in the green hydrogen industry is another area of attention for Brookfield. It promised to ensure the financial sustainability of the contract by investing in this industry through one of its platforms after obtaining a workable contract.
The renewable power and transition group of Brookfield, led by managing director Nawal Saini, stated that the organization’s current assets under management (AUM) are getting close to $3 billion in size and scope. He predicted that if they keep pouring money into their current platforms, this amount will surpass $10 billion in the next three to four years.
Saini clarified that he did not account for prospective expansion through further mergers and acquisitions or ventures beyond their present platforms.
In India’s renewable energy market, Brookfield has been aggressively pursuing acquisitions. In 2019, it paid Rs 500 crore to Axis Energy Ventures for wind farms, and in 2023, it invested Rs 3,000 crore to acquire a 51% share in CleanMax Enviro. For $500 million, they are also expected to purchase a majority stake in Leap Green Energy’s commercial and industrial platform, according to reliable sources.
Since 2014, the business, which is a significant infrastructure investor in India, has invested almost $27 billion in the nation. This comprises significant expenditures such as the acquisition of ATC India for Rs 21,000 crore, the purchase of Jio Towers for Rs 25,215 crore, and the East-West Pipeline (previously Reliance Gas Transportation Infrastructure) for Rs 13,000 crore.
