Brookfield invests $200 million in Leap Green Energy

Canadian asset manager Brookfield said on Thursday it has invested more than $200 million in Tamil Nadu-based renewable energy company Leap Green Energy, with an option to invest another $350 million in the future.

Brookfield said in a statement that it recently entered into definitive strategic investment agreements with Leap Green Energy, under which it acquired a majority controlling interest in the company.

“Brookfield has committed upfront to invest more than $200 million of equity capital in Leap Green through a combination of new share subscriptions and share purchases from existing shareholders. In addition, Brookfield has the option to inject up to $350 million of additional equity capital to support the company’s future growth,” the statement said.

The statement added that Brookfield will work with Leap Green’s existing shareholders to expand the company’s capacity and achieve a capacity in excess of 3 gigawatts (GW) over the next four to five years.

Leap Green has 775 megawatts (MW) of existing wind and solar assets, including assets in operation and under construction.

“Our partnership provides an important opportunity to meet demand in the C&I (commercial and industrial) segment and deliver outcomes where decarbonization and value creation are fully aligned. We remain committed to helping businesses reduce their carbon footprint and positively impact the environment,” said Nawal Saini, Managing Director, Head of Renewable Energy and Transformation, South Asia and Middle East, Brookfield.

Brookfield’s investment will be made through Brookfield Global Transition Fund I (BGTF-I).

Brookfield, a leading investor in the renewable energy sector, has a portfolio of approximately 33 GW of generating capacity and 155 GW of capacity under development. Its assets are located in North and South America, Europe and Asia Pacific, encompassing a diversified technology base of hydro, wind, utility-scale solar, distributed generation, storage and other renewable technologies.

In India, Brookfield’s renewable energy and transformation portfolio includes over 25 GW of wind and solar assets in operation, construction and development across leading platforms. BGTF has committed to invest $1 billion in Avaada Ventures Pvt. Ltd. Brookfield Renewable has acquired a controlling stake in rooftop solar producer CleanMax Enviro Energy Solutions Pvt. Ltd for $360 million in 2023.

March 27, Mint announced that Actis Llp’s BluPine Energy, Singapore’s Sembcorp Industries Ltd, Edelweiss Infrastructure Yield Plus Fund’s Sekura Energy, Torrent Power and JSW Group are considering buying a 1.6 GW portfolio from Brookfield Renewable in India.