Brookfield intends to increase its focus on the renewable energy sector in India

Bombay: Brookfield Asset Management Inc. based in Canada is looking to increase its commitment to renewable energy in India, two people familiar with the company’s plans said on condition of anonymity. The asset manager has so far focused mainly on the real estate and roads segment.

The decision follows Brookfield’s acquisition of TerraForm Global Inc., owned by US renewable energy company SunEdison.

Last December, Brookfield Renewable Partners LP announced that it and its institutional partners had completed the acquisition of 100% of TerraForm Global Inc. for $750 million.

TerraForm Global owns and operates a portfolio of 952 megawatts (MW) of solar and wind assets in Brazil, India and China.

“Brookfield has not been active in renewable energy in India, while global renewables are a huge business for them. The TerraForm acquisition gave Brookfield a 300 MW portfolio of renewable assets in India and with the closing of that acquisition, they are now looking at more renewable energy in India. Their focus so far has been on real estate and roads, where they have invested significant capital in the country,” one of the people was quoted as saying.

Brookfield has approximately $40 billion in assets under management across its renewable energy business, which includes 840 power generating assets and more than 2,300 employees across hydro, wind and solar energy segments.

The Canadian investor owns 217 hydroelectric power plants, about 3,500 MW of wind power and 1,500 MW of solar power. In August 2015, Brookfield made its first investment in Indian infrastructure, acquiring the road assets of Gammon Infrastructure Projects Ltd.

In 2016, it signed an agreement to acquire the office and retail assets of Hiranandani Developers Pvt. Ltd in Powai, Mumbai, valued at around $1 billion.

In April, the company acquired Equinox Business Park, a commercial property in Mumbai’s Bandra-Kurla complex, from Essar Group. ₹ 2,400 crores.

According to the second person quoted above, the Canadian investment firm wants to strengthen its team to focus on renewable energy sources.

Brookfield recently hired Nawal Saini, chief infrastructure officer, at Canada’s second-largest pension fund, Caisse de dépôt et placement du Québec (CDPQ), he added. Saini joined CDPQ in September 2017. He joined Brookfield as a senior vice president. “Nawal joined Brookfield last week and will be part of the team that will focus on renewable energy investments,” he added.

Email inquiries to Brookfield did not elicit any response by press time.

Other investors active in India’s renewable energy sector include Canada’s largest pension fund Canada Pension Plan Investment Board (CPPIB), sovereign wealth funds Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC, as well as infrastructure-focused asset managers such as Macquarie Infrastructure and Real Assets (MIRA), IDFC Alternatives and Actis Llp.