BENGALURU: Singapore investment company Temasek, along with Swedish major EQT, has set up a platform called O2 Power to develop and acquire renewable energy assets in areas like solar and wind energy. The two investment firms have committed $500 million in equity for the venture, which is targeting 4 gigawatts of installed capacity in the coming years.
The Gurgaon-based company will look at both greenfield project development and acquisitions, as it will also be able to leverage the equity commitment to raise debt. Temasek has a portfolio of $11 billion in India across both public and private companies. For EQT, this will be the first investment in the country.
O2 is being headed by Parag Sharma, former chief operating officer at ReNew Power, another platform play in the renewables space that was founded by former finance minister Yashwant Sinha’s son Sumant Sinha and was backed by Goldman Sachs. Other members of the top management are also from ReNew, which has built a capacity of 4.3 gigawatts since it was founded in 2011.
“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. CEO Parag Sharma and his management team have a successful track record and EQT looks forward to work together in creating a future-proofed renewable energy platform,” said Fabian Grone, Partner at EQT Partners, in a statement.
News Source: The Times of India