The EQT Infrastructure IV fund (“EQT” or “EQT Infrastructure”) and Temasek today announced the establishment of O2 Power (or “the Platform”), a renewable energy platform in India. O2 Power will target over four gigawatts of installed capacity across solar and wind and has received total commitments of USD 500 million in equity from EQT and Temasek to be deployed over the coming years.
Headquartered in Gurgaon in the Northern Indian state of Haryana, O2 Power will focus on developing utility scale renewable projects across solar, wind, and hybrid with good quality off-takers via both Greenfield project development and M&A.
The Platform will be led by Parag Sharma as CEO together with an experienced management team consisting of Peeyush Mohit as COO, Nimish Agrwal as Head, Solar and Rakesh Garg as Head, Wind, all with strong local knowledge and proven track records of executing renewable energy projects in India.
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 (SDGs). The Platform contributes to society by providing households with renewable energy hence addressing the SDG 7 – ensure access to affordable, reliable, sustainable and modern energy for all.
Fabian Gröne, Partner at EQT Partners and Investment Advisor to EQT Infrastructure, 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. 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. This is not only EQT Infrastructure’s first investment in India, it is also well in line with our ambitions to contribute to a cleaner future.”
Nagi Hamiyeh, Joint Head, Investment Group at Temasek, 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.”
Parag Sharma, CEO of O2 Power, concluded: “We are excited about joining forces with EQT Infrastructure and Temasek. Besides capital from two of the most prominent investors in the world, we are looking forward to leverage their know-how and industry relationships to support the development of the O2 Power platform.”
With this transaction, EQT Infrastructure IV is expected to be 60-65 percent invested.