According to media reports, Sanjeev Aggarwal, Amplus founder and I Squared Capital have joined forces to set up a climate solutions platform, Hexa Climate Solution.
The platform will primarily focus on renewable energy, water, and carbon offsets. Moreover, I Squared, a New York-based private equity fund, will invest around USD 500 million, reports added. Prior to this partnership, the PE fund I Squared invested around USD 150 million in Amplus Energy Solutions in April 2015.
Hexa Climate Solutions is a new venture following the sale of Amplus Energy Solutions, a major producer of rooftop solar power in India, to Petronas, a state-run oil and gas company from Malaysia. The sale, which happened in April 2019 for Rs 2,700 crore, marked Petronas’ entry into the global clean energy sector. Amplus was mainly owned by I Squared Capital, with the remaining shares held by the management led by its Founder and CEO, Aggarwal.
Hexa Climate Solutions will focus on serving the commercial and industrial (C&I) sector, providing services like 24/7 renewable energy generation, energy storage, and investments in carbon offset projects. I Squared Capital had also expressed interest in acquiring Continuum Green Energy (India) for about USD 1.5 billion. Additionally, both the payers were in talks to acquire a majority stake in Fourth Partner Energy, a Hyderabad-based company backed by TPG Capital, with an estimated value of around USD 350 million.
India aims to generate 50 per cent of its energy from renewable sources by 2030 and increase non-fossil fuel power capacity to 500GW by the end of this decade. Currently, India has 172GW of renewable capacity installed, with an additional 128GW under development.
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