Brookfield announced today that it is making a substantial equity investment in Leap Green Energy—a renewable platform—with operations throughout Tamil Nadu, focusing on providing clean energy solutions for C&I customers in the marketplace. This is consistent with what Brookfield is trying to do in accelerating the global transition to a net-zero carbon economy.
Investment Details
Overall, Brookfield now has a majority controlling interest in Leap Green after definitive strategic investment agreements. The transaction means an amount over $200 million is paid through cash as an initial investment commitment. The payment is made through subscribing to new shares and purchasing shares from existing shareholders. Besides this, Brookfield reserves the ability to inject an incremental 350 million dollars in incremental equity capital in the future to help Leap Green in its growth over time.
Growth and Expansion Plans
Its view includes being able to manage the existing shareholders of Leap Green to increase the capacity and reach of an expansion in the platform to over 3 GW within the next four to five years. Brookfield will invest in Leap Green through the Brookfield Global Transition Fund I (BGTF I) focused on investments supporting the global transition to a net-zero carbon economy while offering investors strong risk-adjusted returns.
This investment will also allow Leap Green to grow its presence in the rapidly expanding C&I segment within India. Tamil Nadu is in focus, as a key target market for Leap Green, with a total addressable renewable C&I market north of 20 GW. We hope to realize these decarbonization targets from the C&I sector through the leverage of Brookfield’s access to capital and operational expertise and Leap Green’s in-house development, asset management, and customer servicing capabilities.
Nawal Saini, Managing Director, Head of Renewable Power & Transition, South Asia, and the Middle East, Brookfield, said he was excited about the partnership. “We are pleased to partner with Leap Green and look forward to supporting them in their growth ambitions. Our partnership provides an important opportunity to meet the demand in the C&I segment and deliver outcomes where decarbonization and value creation are in total alignment. „We remain committed to making contributions toward helping corporates to reduce the carbon footprint and make its positive impact upon the environment,” Saini said.
Commenting on the partnership, in the Mirror, Founder and Managing Director of Leap Green Rajeev Karthikeyan and Founder and CEO of Leap Green Dev Anand Vijayan said, “We are excited to partner with Brookfield, a global leader in the energy transition space. Their combined strengths with our capabilities would make Leap Green a multi-billion-dollar platform in renewables and energy transition while retaining focus on our home market of Tamil Nadu,” they summed up.
Brookfield Renewable Energy Portfolio
Brookfield is one of the world’s largest investors of renewable power, with approximately 33 GW of generating capacity and over 155 GW on the development pipeline. Its assets are geographically distributed across North and South America, Europe, and the Asia-Pacific Region in the form of utility-scale solar, distributed generation, storage, and other renewable technologies.
This includes a portfolio in India with over 25 GW of wind and solar of the renewable power and transition category under various operation, construction, and development stages. It, therefore, demonstrates the numerous holdings by Brookfield and its stand when it comes to supporting renewable energy works that chart a new future in sustainable development.
Conclusion
Leap Green Energy welcomes the strategic investment by Brookfield, underscoring the importance and need for renewable options for an industrial and commercial world looking to de-carbonize. This puts the company with strong capital pumping into the core and gives force to its growth strategy, where the partnership of Leap Green with Brookfield will help in further expanding its capacity and capabilities. It not only supports the global transition to a net-zero economy but will also position Leap Green as a powerhouse within the renewable energy market of India.