Brookfield invests $200 million in TN-based Leap Green Energy

CHENNAI: Canadian asset management firm Brookfield acquired a majority controlling stake in Tamil Nadu-based renewable energy platform Leap Green Energy.

Brookfield has made an upfront commitment to make an investment of about $200 million through a combination of subscription of new shares and acquisition of shares from existing investors. It plans incremental equity infusion of up to $350 million, the company said in a release.

“Brookfield shall work alongside the company’s existing shareholders to enhance tits capabilities and grow the platform to in excess of 3 GW over the next four to five years,” the release said.

The investment will be made through the Brookfield Global Transition Fund I (BGTF I).

Tamil Nadu has a total addressable, growing renewable commercial and industrial market of 20 GW and is a key target market for Leap Green, Brookfield said.

Nawal Saini, managing director and head of renewable power and transition, South Asia and the Middle East at Brookfield, said, “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 helping corporates in reducing their carbon footprint and positively impacting the environment.”

With the partnership with Brookfield, Leap Green plans to scale up as a multibillion dollar renewable and energy transition platform while retaining a focus on our home market of Tamil Nadu, founders Rajeev Karthikeyan and Dev Anand Vijayan were quoted as saying.

Leap Green Energy provides green energy to the commercial and industrial segment in the country. It has an existing wind and solar asset base of 775 MW, which includes operational and under construction assets. The company works in wind/solar power forecasting and are currently extending their services in Tamil Nadu, Rajasthan and a few more states, according to a company.