Brookfield is investing $200 million to acquire a majority stake in Leap Green Energy
It may also exercise an option to invest another $350 million as incremental equity
Leap Green says this investment will enhance its capabilities to expand the platform to exceed 3 GW over the next 5 years
Indian renewable energy company Leap Green Energy has secured Canadian investment firm Brookfield as its controlling shareholder after the latter tipped in over $200 million equity investment.
Brookfield is making this investment through its Brookfield Global Transition Fund (BGTF I), through a combination of subscription of new shares and acquisition of shares from current shareholders. Additionally, the global investor has an option to invest another $350 million as incremental equity to support the company’s future business growth.
Leap Green is focused on India’s commercial and industrial (C&I) market. With Brookfield as its shareholder, Leap Green says it will expand the platform to exceed 3 GW over the next 4 to 5 years. It especially looks at the southern state of Tamil Nadu, with its total addressable C&I market of around 20 GW, as a key target market for the company.
According to its website, Leap Green has an operational capacity of 523 MW, and targets to exceed 6 GW by 2029. Along with wind and solar hybrid, it has interests in pumped hydro storage, green hydrogen/ammonia, among other technologies.
“We are delighted to partner with Brookfield, a global leader in the energy transition space, to combine their strengths with our own capabilities and scale Leap Green to a multibillion dollar renewable and energy transition platform, while retaining a focus on our home market of Tamil Nadu,” said Leap Green’s Founder and MD Rajeev Karthikeyan and CEO Dev Anand Vijayan.
This is not the maiden Indian renewable energy investment for Brookfield, having already invested in Axis Energy Ventures and Avaada (see Brookfield Invests In Indian Renewable Energy Platform).