Brookfield set to divest 550 MW solar project in Bikaner; eyes ₹3K crore EV

The move comes amid rising demand for renewable energy assets in India’s commercial and industrial segment, attracting strong investor interest.

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Brookfield Asset Management is readying to divest its 550-megawatt solar power project in Rajasthan’s Bikaner for an expected enterprise value (EV) of ₹3,000 crore, according to people familiar with the development.Investment bank Jefferies is managing the sale process on behalf of the global alternative asset manager and a few initial bids have been received from overseas investors as well as domestic power producers, they said.

Enterprise value, which factors in debt and cash holdings, is considered a better measure of a company’s total value than market capitalisation alone.

The first phase of 268 MW of the project, which supplies power to commercial and industrial (C&I) consumers across India, was commissioned in 2024. Backed by the International Finance Corporation (IFC), the project counts Hindustan Unilever among its key clients, with the fast-moving consumer goods firm securing a 45 MW supply. Brookfield Properties campuses in Gurgaon and Noida also source solar power from the facility.Prior to the commissioning of the first phase of the project, PTC India signed a long-term agreement with Brookfield Renewables in 2023 to procure 100 MW of solar energy. Under the arrangement, PTC India is responsible for marketing the green power to various utilities as well as C&I customers.In 2024, the IFC committed $105 million through long-term non-convertible debentures allocated to the Bikaner project’s special purpose vehicles. The equity investment for the project was provided by the first vintage of the Brookfield Global Transition Fund (BGTF I).Brookfield invests in India’s renewable energy sector through BGTF I, a $15 billion fund raised in 2022 that has since been fully deployed. The firm has also closed its second fund, BGTF II, raising $20 billion.

The proposed divestment is part of Brookfield’s broader portfolio reshuffle in India. Last year, it sold its 1.6-gigawatt solar and wind assets in the country to Gentari Renewables India.

Brookfield entered India’s renewables market in 2019 by directly acquiring wind farms from Hyderabad-based Axis Energy Ventures for about ₹500 crore. It also acquired a 51 per cent stake in CleanMax Enviro in 2023 with an equity investment of ₹3,000 crore. The same year it committed a $1 billion investment in Avaada Group to fund its green hydrogen and green ammonia ventures in the country.

The asset manager currently has more than $4 billion invested in India’s energy sector, with a portfolio of about 45 GW of wind and solar assets in operation and pipeline across various platforms. Its overall assets under management in India stand at about $32 billion across infrastructure, energy real estate and private equity.

The C&I segment, the country’s largest power consumer, has witnessed several mergers and acquisitions deals in recent times, highlighting increasing demand for such assets. Earlier this month, Inox Clean Energy acquired Macquarie-owned Indian renewable energy platform Vibrant Energy, which supplies renewable power to commercial and industrial clients. Global Infrastructure Partners, part of BlackRock, invested about ₹3,000 crore in Aditya Birla Renewables, which operates a 4.3-GW C&I-focused renewable platform.

The C&I segment is expected to see renewable energy capacity rise to 57 GW by 2027-28 from around 40 GW expected by the end of 2025-26, according to a recent report by Crisil Ratings. The capacity addition will be driven by several factors, including favourable long-term power purchase agreement tariffs compared with grid tariffs, corporate net-zero commitments, renewable purchase obligations and attractive returns supported by strong counterparties.

Attractive returns are also encouraging developers to increase investments in the C&I segment.

Capacity additions are expected to be largely led by developers backed by private equity investors, driven by higher return on equity for commercial and industrial projects compared with utility-scale projects due to better tariffs. This will be supported by counterparties with strong credit profiles, ensuring stable cash flow generation, the report said. According to credit rating agency ICRA, C&I consumers account for 45-50 per cent of the country’s total electricity demand.

A Brookfield spokesperson declined to comment.