Blueleaf Acquires Stake in Jakson’s 1GW Solar Projects Valued at $400 Million

Key Takeaways

Blueleaf Energy to acquire a significant stake in Jakson Green’s 1 GW solar portfolio for $400 million.
The partnership aims to develop an additional 4 GW renewable energy portfolio in India by 2030.
The three solar projects in Rajasthan will begin commissioning in October 2023 and generate over 1,800 GWh of electricity annually.

Investment in Renewable Energy

Macquarie-owned Blueleaf Energy has announced its intention to purchase a substantial interest in Jakson Green’s 1 GW solar energy portfolio, valuing the deal at $400 million. This acquisition marks a significant step in a broader partnership aimed at expanding both companies’ footprints in India’s renewable energy sector, with a goal of developing an additional 4 GW renewable energy capacity by 2030.

Bikesh Ogra, managing director and global CEO of Jakson Green, emphasized the benefits of the partnership, stating, “We are a young company with growth plans in multiple areas of sustainable energy each needing growth capital… a partnership with a global investor gives us respectability in the generation space.” Jakson Green, established two years ago and majority-owned by Jakson Ltd, which primarily manufactures diesel generators, aims to build a 5 GW renewable generation portfolio and operates an EPC business across several countries.

As part of the acquisition, Blueleaf will gain stakes in three solar projects located in Rajasthan, for which Jakson has secured power purchase agreements (PPAs) and acquired 70% of the necessary land. These projects also come with established grid connectivity, a crucial element in the often complex landscape of renewable energy developments. Ogra noted, “The fact that land and connectivity are already in place for these projects made it attractive to the investor since it has become quite a challenge to obtain these for renewable projects these days.” Jakson Green is set to act as the EPC contractor for these initiatives.

Raghuram Natarajan, CEO of Blueleaf Energy, commented on the synergy between the two companies: “Blueleaf’s development and commercial capabilities combined with Jakson Green’s project execution strength create a strong partnership for delivering high-quality renewable energy projects.” Together, they aim to contribute over 5 GW of renewable energy capacity to the Indian grid by 2030.

Blueleaf Energy, a leading renewable energy platform in Asia, backed by a Macquarie Asset Management managed fund, has an impressive development pipeline that includes solar, wind, and storage projects totaling 7 GW. The ongoing partnership reflects the investor’s commitment and interest in expanding India’s renewable energy landscape, with Ogra indicating that “the actual deal will depend on the value those projects generate in the future.” Ernst & Young provided advisory services to Jakson Green for this transaction.

The three solar projects are anchored by 25-year PPAs with Rajasthan Urja Vikas Nigam Limited (RUVNL), Solar Energy Corporation of India (SECI), and NHPC, with commissioning expected to begin in October 2023. Full operational capacity for the 1 GW portfolio is anticipated by mid-2024, and these projects are projected to produce over 1,800 GWh of electricity annually.

As foreign investments in India’s rapidly growing renewable energy sector continue to rise, there is a growing reliance on capable companies and executives skilled in navigating the country’s regulatory and business environments to execute projects effectively. Both equity and debt financing remain readily available for firms with strong project execution capabilities, indicating favorable conditions for future growth in the sector.

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