Canada-based Brookfield Asset Management has announced an equity investment in Leap Green Energy, a renewable energy company based in Tamil Nadu, India. The initial commitment includes an equity investment of over $200 million, comprising the subscription of new shares and the acquisition of shares from existing shareholders.

Under the terms of the definitive strategic investment agreements, Brookfield has acquired a majority controlling stake in Leap Green.

Brookfield said it has the option to inject a further $350 million of incremental equity capital to support Leap Green’s future growth ambitions.

This partnership aims to enhance Leap Green’s capabilities and expand the platform’s capacity to over 3 GW within the next four to five years.

Brookfield’s investment will be channeled through the Brookfield Global Transition Fund I, which according to the company aligns with its strategy of investing in projects that accelerate the global shift to a net-zero carbon economy while ensuring risk-adjusted solid returns for investors.

The capital invested in Leap Green will drive the platform’s growth in India’s rapidly expanding C&I segment. Tamil Nadu remains a key target area for Leap Green with a total addressable and growing renewable commercial and industrial (C&I) market of approximately 20 GW.

Nawal Saini, Managing Director, Head of Renewable Power & Transition, South Asia and the Middle East, Brookfield, said, “We are pleased to partner with Leap Green and look forward to supporting them in their growth ambitions. Our partnership provides an important opportunity to meet the demand in the C&I segment and deliver outcomes where decarbonization and value creation are in total alignment. We remain committed to helping corporates in reducing their carbon footprint and positively impacting the environment.”

In May, Brookfield signed a global framework agreement with Microsoft to develop over 10.5 GW of new renewable power capacity, such as wind and solar farms, by 2030, as energy-intensive data centers powering artificial intelligence are expected to drive up electricity demand.

Last year,  Brookfield Renewable Partners emerged as one of the leading global large-scale solar photovoltaic project developers in Mercom Capital Group’s Leading Global Large-Scale Solar PV Developers report.