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Temasek, a Singapore-based Holdings company, has partnered with EQT, a Swedish private equity company, to launch a renewable energy platform in India.
The platform, called 02 Power, aims to construct wind and solar projects in the country. The companies have allocated an initial equity commitment of $500 million ($ 35.34 billion) as the seed capital for this joint venture (JV).
This joint venture marks the companies’ first foray into the country.
Temasek is a global investment company headquartered in Singapore with a portfolio of operations in financial services, telecommunications, media, technology, real estate, transportation, industrials, life sciences, and agribusiness, as well as energy and resources.
EQT is a global investment organization that manages and advises investment funds across the world.
Back in 2017, Temasek partnered with EQT to expand its presence into Asia, particularly in Southeast Asia, India, Korea, Japan, New Zealand, and Australia to look for investment opportunities in communications, transportation, energy, and social infrastructure.
However, this is not the first joint venture by overseas corporations aimed at building the country’s renewable energy infrastructure.
In September 2018, Mercom reported that in a similar deal, ENGIE, a global independent power producer, and STOA, a French infrastructure and investment firm, announced a joint venture to build wind projects in India, aiming to establish over 2 GW of wind energy capacity over five years.
Previously, global renewable energy development firm Lightsource BP and investment firm Everstone Group teamed up to create a major fund management platform called EverSource Capital for the development of green energy infrastructure in India with a fundraising target of £500 million ($ 45.49 billion).