“We are a young company with growth plans in multiple areas of sustainable energy each needing growth capital and therefore this partnership allows us to allocate our capital for every business,” Bikesh Ogra, managing director & global CEO, Jakson Green, told ET. “A partnership with a global investor gives us respectability in the generation space.”
Jakson Green is a two-year-old company majority controlled by Jakson Ltd, which mainly manufactures diesel generators. Jakson Green, which aims to build a 5 GW renewable generation portfolio, has a green EPC business in half a dozen countries.
Under the deal, Blueleaf will hold separate stakes in three solar projects in Rajasthan for which Jakson has secured power purchase agreements (PPAs) and acquired 70% of the land. These projects also have grid connectivity in place.
“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,” said Ogra. Jakson Green will be the EPC contractor for these three projects.
“Blueleaf’s development and commercial capabilities combined with Jakson Green’s project execution strength creates a strong partnership for delivering high-quality renewable energy projects, propelling us towards our shared goal of adding in excess of 5 GW of renewable energy capacity to the Indian grid by 2030,” said Raghuram Natarajan, CEO of Blueleaf Energy.
Blueleaf, a pan-Asian renewable energy platform owned by a Macquarie Asset Management managed fund, has a development pipeline of solar, wind and storage projects of 7 GW.
The deal to extend the partnership between Jakson and Blueleaf to build a 5GW portfolio shows the investor’s “intent and interest”, said Ogra. “The actual deal will depend on the value those projects generate in the future,” he said. Ernst & Young advised Jakson on the deal.
The three solar projects that are part of the deal have 25-year PPAs with Rajasthan Urja Vikas Nigam Limited (RUVNL), Solar Energy Corporation of India (SECI) and NHPC. These projects will start commissioning in October this year and the 1 GW portfolio will be fully ready by the middle of next year. These projects are projected to generate over 1,800 GWh of electricity annually.
Foreign funds have been increasingly investing in the rapidly expanding Indian renewable energy sector, relying on companies and executives with capabilities to navigate India’s regulatory and business landscape and quickly execute projects. Both equity and debt have been in ample supply for companies with project execution capabilities.
