Brookfield has announced an equity investment of $550 million in Tamil Nadu-based Leap Green Energy, with an upfront commitment of $200 million and the option to infuse the remaining $350 million to support future growth of the business.

“It has acquired a controlling stake in the company,” Brookfield said in a release.

Leap Green Energy is a renewable platform focused on providing clean energy solutions to commercial and industrial customers. Brookfield and Leap Green recently entered into investment agreements after which the former acquired the stake.

The upfront commitment is through a combination of subscription to new shares and acquisition of shares from current shareholders.

Brookfield will work with Leap Energy’s existing shareholders to boost its capabilities and grow the platform in excess of 3 GW over the next four to five years.

Brookfield’s investment will be made through the Brookfield Global Transition Fund I (BGTF I), in line with its strategy of focusing on investments that accelerate the global transition to a net-zero carbon economy while delivering strong risk-adjusted returns to investors.

“BGTF I’s investment in Leap Green should help the company’s growth plans especially in the rapidly expanding commercial and industrial segment,” it said.

Tamil Nadu, with a total addressable, growing renewable C&I market of 20 GW is a key target market for Leap Green.

By combining Brookfield’s access to capital, procurement, operational expertise, and Leap Green’s in-house development, asset management and customer servicing capabilities, the business is well-positioned to cater to the decarbonisation targets of the C&I segment.

Brookfield is one of the world’s largest investors in renewable power, with approximately 33 GW of generating capacity and a development pipeline of over 155 GW.

In India, Brookfield’s renewable power and transition portfolio comprises over 25 GW of wind and solar assets in operation, construction and development across leading platforms.

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