Brookfield Asset Management has entered into a joint venture with Hyderabad-based Axis Energy Ventures India to set up a renewable energy development platform, with the investment management company investing up to $845 million. The Indian firm will provide its existing pipeline of wind and solar power projects that are under various stages of development in the country.
Brookfield would be making the investments through its Brookfield Global Transition Fund II (BGTF II). Under the partnership, the companies will jointly provide energy solutions to various industry participants including government entities, corporate customers and emerging industries, such as green hydrogen, they said.
“We foresee strong growth in India on the back of the government’s target of 500 GW of renewable energy by 2030, and its stated objective of energy security. This demand will be increasingly fulfilled by scaled renewable assets, combining multiple technologies, such as solar, wind and storage,” said Brookfield managing director Nawal Saini.
Brookfield has more than 16 GW of wind and solar assets in operation or in the pipeline across India. This is Brookfield’s second joint venture with Axis Energy, and since 2019, Brookfield and Axis Energy have developed over 1.8 GW of solar and wind assets.
“Through this new platform, we will together accelerate the development of renewable energy projects in India with a strong commitment to sustainability and environmental responsibility,” Axis Energy Group CMD Kataru Ravi Kumar Reddy said.
Earlier in 2022, Brookfield Renewable India commissioned its first greenfield solar project with a 445 MW capacity in Jodhpur, Rajasthan. This project was developed in partnership with Axis Energy.
The companies had also signed a 25-year power purchase agreement pact with NTPC to sell electricity to Madhya Pradesh Power Management Company and Puducherry electricity department.
The project – equipped with bifacial solar modules and waterless robotic cleaning solutions – will generate over 800 GWh of clean energy annually and will eliminate 600,000 tonne of CO2 emissions per year.
With about $850 billion of assets under management, Brookfield focuses on real assets and essential service businesses. It also offers a range of alternative investment products such as public and private pension plans, endowments and foundations and sovereign wealth funds among others.