Private equity (PE) giants EQT and Temasek have exited Indian renewable energy platform O2 Power by selling their 100% stake to JSW Neo Energy, a wholly owned subsidiary of JSW Energy, for $1.5 billion, according to a press release.
Established as a new company in 2020 by EQT and Temasek, O2 Power specialises in utility-scale projects across the solar, wind and hybrid energy technologies. EQT and Temasek had deployed $500 million as seed equity capital for 51% and 49%, respectively, in the Indian renewable energy platform.
Headquartered in Gurugram, the company has secured a total capacity of 4.7 gigawatts since its inception, with another 2.3 gigawatts expected to be operational by June 2025, per a statement.
The transaction marks a significant milestone for Swedish PE firm EQT in the Asia Pacific, as O2 Power was its debut infrastructure investment in the region and its first exit in the sector.
“India is one of the most exciting renewable energy markets globally, and O2 Power has been playing a key role in advancing its clean energy transition,” Piyush Singhvi, Managing Director and Head of India & Southeast Asia for the EQT Infrastructure advisory team, said.
O2 Power CEO Parag Sharma said, “This transaction marks an exciting new chapter for O2 Power. With the backing of JSW Neo Energy, we aim to build India’s most impactful renewable energy business, solidifying our position as a market leader while driving the nation’s renewable energy goals.”
Barclays served as financial advisor to EQT and Temasek, and A&O Shearman served as legal advisor to EQT and Temasek.
