Gentari Sdn Bhd in race for Brookfield's renewable energy assets in India

29 May 2024 , 10:16 AM

According to news reports, Gentari Sdn Bhd, the renewable energy division of Malaysian energy goliath Petronas, is the front-runner for a portion of Brookfield Asset Management’s India renewable portfolio. According to them, Gentari has signed an exclusivity agreement for further talks with Brookfield after conducting due diligence on the assets.

According to news reports, the government-owned Oil and Natural Gas Corp (ONGC) is another competitor that has finished its due diligence. The estimated enterprise value of Brookfield’s 2 GW renewable portfolio in India, which is for sale, is between $800 million and $1 billion (about ₹6,600 and 8,300 Crore).

Sekura Energy, Sembcorp, and Masdar Energy of the UAE are among the other organisations that had made preliminary proposals but have withdrawn from the competition, reports claimed.

According to the reports cited, of the portfolio, 1 GW is operating, and projects with a capacity of 1 GW are now under construction and should be finished in 18 months.

Canadian investor Brookfield Asset Management, which recruited investment bank JP Morgan to oversee the selling process, is seeking to partially monetarize its assets five years after joining the renewable energy market in India, as ET first reported in February. Across India, Brookfield has over 20 GW of wind and solar assets under development or in operation.

Capabilities of 500 MW in Rajasthan, 50 MW in Gujarat, 300 MW in south India, and 80 MW in Madhya Pradesh are among the holdings that will be sold off.

One of the first infrastructure investors in India was Brookfield. Approximately $25 billion has been invested by Brookfield in the nation since 2014. This includes investments of ₹25,215 Crore in Jio Towers, ₹21,000 Crore for the purchase of ATC India, and ₹13,000 Crore for the acquisition of East-West Pipeline (previously Reliance Gas Transportation Infrastructure).

In the last three years, investments totaling ₹1.32 Lakh Crore have been made in India’s renewable energy sector. Research agency Icra projects that installed renewable energy capacity will rise from 132 GW in October 2023 to around 170 GW by March 2025.

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