Canada’s Brookfield Asset Management Adds $845 Mn for JV with Axis Energy

Canada's Brookfield Asset Management Adds $845 MN for JV with India's Axis Energy

Canadian investor in renewable energy, Brookfield Asset Management has announced a second joint venture with Telangana-headquartered clean energy firm, Axis Energy Ventures. Brookfield Asset Management will invest worth $845 million in solar and wind energy projects of the Indian firm. The investment is being made from the Brookfield Global Transition Fund II to accelerate countrywide projects from Axis under various stages of development.

Back in 2019, the two firms had established renewables platform ABC Renewables. As on date, the platform has developed more than 1.8 GW of solar and wind energy projects.

Brookfield Investments in India

Brookfield, among the largest investors in the world in renewables, has been ramping up investments in India.

Earlier in the year, Indian renewable energy firm  CleanMax announced raising an equity fund from the Brookfield Global Transition Fund (BGTF). The funding is worth USD 360 million. Before this, BGTF also revealed its plan to invest US $ 1 billion in Avaada Ventures Private Limited to fund its green hydrogen and green ammonia ventures in India.

Brookfield Renewable claims to operate one of the world’s largest publicly traded platforms for renewable power and decarbonization solutions. Its diversified portfolio consists of hydroelectric, wind, solar, distributed energy and sustainable technology solutions across five continents.

Brookfield’s investments in the country have been rising rapidly and currently exceed $3 billion with energy assets at 16 GW.

Last month, it also entered into an MoU with India-based giant, Reliance Industries to manufacture renewable energy and decarbonization equipment in Australia.

“Under this strategic partnership, both partners will leverage their expertise and resources to jointly provide curated energy solutions to various industry participants, including government entities, corporate customers and emerging industries such as green hydrogen,” a company statement read about the JV between Axis and Brookfield.

“We foresee strong growth in India on the back of the government’s target of 500GW 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,” stated  Nawal Saini, Managing Director at Brookfield.

“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. This exciting partnership marks a significant milestone in our mission to accelerate India’s transition to clean and sustainable energy sources,” remarked Kataru Ravi Kumar Reddy, Chairman and Managing Director of Axis Energy Group.

There has been a rising interest from foreign investors in India, which is emerging as a favourable destination for investments in the renewable energy sector, given its favourable policy landscape and cheap labour. Norway’s Climate Investment Fund, France’s TotalEnergies, Singapore’s Temasek are among the foreign firms that have expressed interest in India’s renewable energy sector.