RIL and Brookfield Sign MoU to Expand Renewable Power in Australia

RIL and Brookfield Sign MoU to Expand Renewable Power in Australia
RIL and Brookfield Sign MoU to Expand Renewable Power in Australia

by Tanushree Jaiswal Last Updated: Aug 01, 2023 - 06:59 pm 352 Views
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Reliance Industries Ltd (RIL) and Brookfield Asset Management have signed an MoU to manufacture renewable energy equipment in Australia. The partnership aims to accelerate the nation's energy transition by supplying PV modules and battery storage, supporting up to 14 GW of new generation and storage capacity. The move is expected to drive down emissions and create job opportunities in Australia's renewable energy sector.

Reliance-Brookfield MoU: Powering Australia's Renewables

In an exciting move towards a sustainable future, Reliance Industries Ltd (RIL) and Brookfield Asset Management have joined hands to manufacture renewable energy and decarbonization equipment in Australia. The collaboration aims to accelerate the nation's energy transition and facilitate its journey toward a net-zero future.

Under the Memorandum of Understanding (MoU) signed between the two companies, Brookfield will explore avenues of direct capital investment and skill development in Australia's renewable energy sector. The focus will be on locally producing clean energy equipment, such as photovoltaic (PV) modules, long-duration battery storage, and components for wind energy.

The collaboration aims to assess the potential for setting up advanced operations in Australia, focusing on the manufacturing or assembly of equipment necessary for renewable energy projects. The equipment will be supplied to various players in the market, including Origin Energy Markets, further reinforcing Australia's energy transition.

Anant Ambani, Director of Reliance New Energy Ltd., expressed confidence in the collaboration, stating that it will accelerate Australia's transition to a net-zero future while boosting the global green energy movement.

The development follows Brookfield's earlier agreement to acquire Origin Energy, demonstrating their commitment to invest between A$20 billion and A$30 billion over the next decade to accelerate the energy transition. The MoU with Reliance will ensure a consistent and sufficient supply of clean energy equipment required to develop up to 14 GW of new, large-scale generation and storage capacity in Australia.

Luke Edwards, Brookfield Renewable Head of Australia, highlighted the opportunity to bring advanced manufacturing processes to Australia, leveraging the nation's manufacturing history and abundant raw materials. This move is expected to drive down emissions faster, create job opportunities, and contribute significantly to the country's sustainable growth.

The collaboration's primary objective is to kickstart a new era of local manufacturing that will benefit domestic renewables developers and communities across Australia. With the ever-reducing timeline for Australia to achieve its emissions-reduction targets by 2030, establishing global partnerships in manufacturing is seen as a crucial step to expedite the transition to renewable energy.

This groundbreaking partnership between Reliance Industries and Brookfield Asset Management underscores their dedication to a greener and more sustainable future for Australia, setting an example for global efforts to combat climate change and accelerate the adoption of clean energy solutions.

For Reliance Industries, India's clean energy sector is a key trigger, with the financial services firm Bernstein stating that it is expected to become a $200-billion market with a cumulative spending of $2 trillion by 2050. 
The clean-energy business is projected to be worth ₹200 per share, potentially accounting for 40% of the total addressable market. Bernstein also expects Reliance Industries to generate $10 billion in revenue from its new energy business by 2030.

Solar Energy Corp Proposes 51% Stake to Reliance Industries for Clean Energy JV

India's renewable energy agency, Solar Energy Corp, has proposed a groundbreaking joint venture with Reliance Industries, a major player in the oil-to-telecoms sector, with the aim of supplying renewable power to the company's refineries and manufacturing plants. The move comes as part of India's ambitious efforts to increase the share of clean energy in its overall energy mix.

The proposed joint venture is set to bolster Reliance Industries' commitment to transitioning towards renewable energy sources and reducing its reliance on fossil fuels. With the significant growth of India's renewable energy market in recent years, this strategic partnership with Solar Energy Corp will enable the conglomerate to tap into the flourishing clean energy sector.

In a generous offer, Solar Energy Corp has put forth a 51% stake, giving Reliance Industries majority ownership in the joint venture. This ownership will grant the conglomerate control over operations and decision-making processes, empowering them to actively participate in shaping the future of renewable energy in India.

The joint venture aligns perfectly with India's ambitious goals to achieve 175 GW of renewable energy capacity by 2022, with solar and wind power at the forefront. By collaborating with Reliance Industries, Solar Energy Corp aims to leverage the conglomerate's extensive manufacturing capabilities and infrastructure, which will be instrumental in expanding the utilization of renewable power.

For Reliance Industries, this collaboration represents a remarkable opportunity to drive sustainability objectives. With access to renewable power from the joint venture, the company can reduce its carbon footprint and achieve substantial cost savings in its operations. This significant step forward in clean energy adoption will not only contribute to India's renewable energy targets but also set an example for other major conglomerates in the region.

The partnership between Solar Energy Corp and Reliance Industries reflects the growing momentum of India's renewable energy sector and the increasing interest of major corporations in transitioning to cleaner and more sustainable sources of energy. As the country continues its journey towards a greener future, such collaborations will play a vital role in securing a cleaner, more sustainable energy landscape for India and the world.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


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