#EQT #India #O2 Power #JSW Neo Energy #Gurgaon

EQT and Temasek Announce the Sale of O2 Power

In a significant move within the renewable energy sector, EQT Infrastructure IV and Temasek have finalized the sale of O2 Power, a noteworthy player in India’s renewable energy industry. This transaction, valued at $1.5 billion, involves the acquisition by JSW Neo Energy, a subsidiary of JSW Energy, marking EQT's first successful infrastructure exit in the Asia Pacific region.

Background of O2 Power

Founded in 2020 by EQT and Temasek, O2 Power quickly became a prominent name in India’s renewable energy landscape. Achieving a total capacity of 4.7 gigawatts, with 2.3 gigawatts anticipated to be operational by mid-2025, the company has diversified its portfolio across solar, wind, and hybrid energy technologies. This journey began as a greenfield initiative and transformed into a large-scale operation through disciplined governance and strategic investments.

The Strategic Importance of the Sale

The sale is pivotal not only for EQT but also for the future trajectory of renewable energy in India. The Indian government's ambitious goal targets achieving 500 gigawatts of installed renewable capacity by 2030, making the country's energy market one of the fastest-growing globally. O2 Power’s established presence and robust infrastructure can significantly contribute towards meeting these national objectives.

Piyush Singhvi, the Managing Director of the EQT Infrastructure advisory team, expressed pride in O2 Power’s progress, noting its vital role in India's energy transition. He highlighted how the company's structured governance and strategic innovation have been crucial in establishing a diversified renewable energy platform.

Leadership and Future Prospects

Parag Sharma, CEO of O2 Power, emphasized the importance of the transition for the company, thanking the dedicated team that contributed to its success. With the backing of JSW Neo Energy, Sharma aims to solidify O2 Power’s market leader status while focusing on expanding its renewable energy capacity. The ongoing support will ensure that the company continues to be a frontrunner in driving India’s renewable energy goals.

Accomplishments and Resilience

Under the stewardship of EQT and Temasek, O2 Power has grown from a small team to a proficient organization of over 300 employees. The company has not only built its capabilities but has also streamlined essential functions in finance, compliance, and human resources. Even during the challenging times posed by the COVID-19 pandemic, O2 Power exemplified resilience through strategic planning and acquisitions that allowed it to sustain growth.

Conclusion

The transaction represents a landmark achievement for EQT, marking its initial infrastructure exit within Asia and exemplifying its commitment to energy transition investments. The successful sale to JSW Neo Energy signals a promising chapter for O2 Power, as it gears up to play an instrumental role in advancing India’s renewable energy landscape. With strategic support and a robust operational framework, the future looks bright for O2 Power as it aims to lead the charge in fostering a cleaner, more sustainable energy future in India.