Canadian alternative investment firm Brookfield Asset Management has struck a deal to sell a portfolio of 1.6GW solar and wind assets in India to Malaysian green energy company Gentari.
Brookfield said in a statement Wednesday that the asset sale had been structured in two phases. The first phase, which comprises the sale of 1GW of operating assets, has been completed, it said.
The announcement comes a few months after VCCircle reported in November last year that Brookfield had moved a step closer to a deal with Gentari to sell green energy assets in India.
Although Brookfield did not announce any financial terms of the transaction, solar and wind project typically fetch a valuation of Rs 4.5-5 crore per MW. This would indicate that the assets being sold may be valued between Rs 7,200-8,000 crore, or around $830-920 million.
Gentari, promoted by Malaysian energy major Petronas, was founded in 2022. It has been rapidly expanding its presence in India’s green energy sector by adding greenfield capacities and acquiring existing projects. In 2023, for instance, it teamed up with Singapore sovereign wealth fund GIC to invest in AM Green.
Nawal Saini, Brookfield’s managing director and head of renewable power and transition for South Asia and the Middle East, said monetizing a part of its portfolio shows the firm’s ability to create value for its stakeholders.
“This transaction with Gentari reinforces investor confidence and unlocks new opportunities for further capital allocation in the country. With approximately 40 GW of wind and solar assets across various stages, our overall portfolio reflects our long-term commitment in India,” he said.
Brookfield is an active investor in India’s renewable power sector and has struck several acquisitions to expand its portfolio. Last year, Brookfield acquired a majority stake in Tamil Nadu-based Leap Green Energy, founded by the family of India’s first Formula One driver Narain Karthikeyan. In 2023, the firm invested $360 million to acquire a majority stake in renewable energy company CleanMax and invested $1 billion in Avaada Group to help finance the group’s green hydrogen and green ammonia ventures. In addition, Brookfield partnered with Axis Energy Ventures for renewable energy projects and agreed to invest $845 million.
Brookfield is one of the world’s largest investors in renewable power, with approximately 46 GW of installed capacity and a development pipeline of approximately 200 GW.
Apart from India, Brookfield’s green energy assets are located across North and South America, Europe, and Asia Pacific. These comprise hydroelectric, wind, utility-scale solar and storage facilities.
The assets being offloaded by Brookfield are spread across Gujarat, Madhya Pradesh, Rajasthan and Southern India, VCCircle previously reported. The assets include those developed by TerroForm Power (which has since merged with Brookfield) and state-owned NTPC Ltd and NHPC Ltd, among others, the VCCircle report had said.
