Whalesbook
Brookfield Sells Rajasthan Solar Project for ₹3,000 Crore
Brookfield Asset Management is selling its 550-megawatt solar power project in Bikaner, Rajasthan. The deal is valued at approximately ₹3,000 crore ($360 million). Investment bank Jefferies is managing the sale, which has attracted bids from international and domestic buyers. This move allows Brookfield to free up capital from a mature asset for its aggressive expansion plans in India's energy sector. The sale price aligns with market rates, where similar projects have sold for $0.6 to $0.8 million per megawatt. Brookfield manages around $30 billion in Indian assets across infrastructure, real estate, and private equity, aiming to grow this to $100 billion. The Bikaner project's valuation of about ₹5.45 crore per MW fits current industry averages.
India's C&I Sector Drives Renewable Growth
The sale comes as India's commercial and industrial (C&I) renewable energy market expands rapidly. This sector now represents nearly 52% of India's electricity demand, with businesses viewing green power as essential. C&I renewable capacity is forecast to reach 57 GW by 2027-28, up from about 40 GW by the end of 2025-26. Key drivers include attractive long-term power purchase agreements, corporate net-zero targets, and strong returns for investors. Policies like the Green Energy Open Access Rules have also made it easier for C&I customers to buy renewable power. The International Finance Corporation (IFC) previously financed the Bikaner project with $105 million, showing support for its viability and India's decarbonization.
Brookfield's Growth Strategy and Funding Success
This sale supports Brookfield's wider strategy in India, which involves investing heavily in areas like electric vehicles and green hydrogen. The company has successfully raised significant capital, recently closing its second Brookfield Global Transition Fund (BGTF II) with $20 billion in commitments, totaling $23.5 billion with co-investments. Its previous fund, BGTF I, raised $15 billion. About 10% of BGTF I was invested in India, and BGTF II is expected to deploy substantial funds into the country's transition projects. Brookfield globally manages over $1.18 trillion in assets, with nearly $603 billion in fee-earning assets as of the end of 2025. Its investment focus is on decarbonization, digitalization, and deglobalization, viewing India as a key market for these trends. Selling the Rajasthan solar project is a clear move to recycle capital for these higher-growth opportunities. Last year, Brookfield also sold a 1.6 GW solar and wind portfolio in India to Gentari Renewables India.
Valuation Concerns and Market Competition
Despite opportunities, India's renewable energy sector faces challenges. Brookfield Asset Management's (BAM) P/E ratio is around 29-30, indicating investor optimism for growth. However, a dividend payout ratio exceeding 100% raises sustainability questions. In the C&I solar market, rising competition from companies like ReNew Energy and NTPC Green Energy, coupled with a large number of projects, could lower future asset values and returns. Intense investor interest might also lead to competitive bidding for prime assets, reducing earlier high returns. Brookfield needs continuous successful asset sales and fundraising to meet its $100 billion India AUM goal. Any slowdown could create funding issues. Analysts generally rate BAM as 'Hold', balancing growth potential with risks.
Outlook for India's Renewable Sector
The C&I segment is expected to lead India's renewable energy growth, reaching 57 GW by 2027-28. Government policies and favorable economics compared to grid power support this expansion. Analysts are generally positive, though cautious, about India's renewable energy sector, with many rating key companies as 'Neutral' or 'Hold'. For Brookfield, successfully selling assets and investing in transition funds is key to meeting its Indian growth targets. Its future performance will depend on securing long-term contracts and navigating regulatory changes.