Swedish investment firm EQT and Temasek have agreed to sell 100% of renewable energy platform O2 Power to Mumbai-based JSW Neo Energy for US$1.5 billion.

This is the largest renewable energy exit by a financial sponsor in India. It also marks EQT’s first infrastructure exit in Asia-Pacific, with the assets being held by EQT Infrastructure IV, a US$9 billion fund launched in 2018. Barclays served as financial adviser to EQT and Temasek, while A&O Shearman acted as legal adviser.

Headquartered in Gurgaon, India, the company has secured a total capacity of 4.7 gigawatts since its inception, with 2.3GW expected to be operational by June 2025.

The company was established by EQT and Temasek in 2020, and built up into one of India’s largest renewable energy platforms, specializing in utility-scale projects across solar, wind and hybrid energy technologies, and serving both the public utility and commercial and industrial segments.

"We are deeply grateful to EQT and Temasek for their support in establishing O2 Power as a leader in India’s renewable energy sector," says O2 Power chief executive officer Parag Sharma. "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.”

India’s renewable energy market remains one of the fastest-growing globally, driven by the government’s ambitious targets of achieving 500GW of installed renewable capacity by 2030.