Swedish alternative investor EQT Infrastructure and Singapore’s state-owned Temasek have joined hands to launch O2 Power, a renewable energy platform in India. O2 Power will target over 4 GW of installed capacity across solar and wind and has received equity commitments totaling US$ 500 million from EQT and Temasek to be invested over the coming years.
This would be EQT Infrastructure’s first investment in India, and will be made through its EQT Infrastructure IV fund. With this transaction, EQT Infrastructure IV, which is worth 9.1 billion euros, is expected to be 60-65% invested.
Headquartered in Gurgaon, and led by Indian developer Renew Power‘s former CEO Parag Sharma, O2 Power will focus on developing utility-scale renewable projects across solar, wind, and hybrid with good-quality offtakers via both Greenfield project development and mergers and acquisitions.
The investment in the platform is in line with EQT’s thematic approach to invest in sustainable solutions, guided by the United Nations’ Sustainable Development Goals.
“EQT Infrastructure IV invests in strong-performing infrastructure companies with the potential for significant value creation in sectors with suitable infrastructure characteristics and favorable market trends. The Fund makes primarily equity or equity related investments typically ranging between EUR 100 million and EUR 600 million where the Fund either holds control or co-control positions or otherwise is capable of exercising a significant influence”—as per a note on EQT website.
On their India venture, EQT Infrastructure investment advisor Fabian Gröne commented: “India presents significant investment opportunities being the second largest renewable energy market in the world and EQT is delighted about teaming up with Temasek and O2 Power.”
Temasek joint head-Investment Group Nagi Hamiyeh added: “We seek opportunities to invest in solutions that contribute to a better and more sustainable world. The partnership with EQT to establish O2 Power is consistent with our focus on sustainable living, and in particular, the development of eco-conscious energy solutions.”