The MoU aims to accelerate and de-risk Australia’s energy transition
Reliance Industries and Brookfield Asset Management signed a Memorandum of Understanding (MoU) to explore the manufacturing of renewable energy and decarbonisation equipment in Australia.
The MoU aims to accelerate and de-risk Australia’s energy transition by enabling it to locally produce clean energy equipment such as photovoltaic modules, long-duration battery storage, and components for wind energy, the company said in a press release.
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This will help Australia transition to a net zero future, it added.
In March this year, Brookfield had also signed a binding agreement with EIG to acquire Origin Energy. The proposed acquisition is currently going through the relevant approvals processes.
According to a report by Moneycontrol, as part of its proposed acquisition of the Origin Energy Markets division, Brookfield along with its institutional partners and global institutional investors GIC and Temasek have set out a plan to invest between A$20 billion and A$30 billion over the next ten years to accelerate its energy transition.
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“We are establishing these types of global partnerships in manufacturing now to allow us to get started as quickly as possible given the ever-reducing timeline for Australia to reach its first emissions-reductions targets in 2030,” Luke Edwards, Brookfield Renewable Head of Australia, said.
India’s clean energy sector, which is expected to grow to a $200-billion market and see cumulative spending of $2 trillion by 2050, is the next key trigger for Reliance Industries’ stock, financial services firm Bernstein has said.
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“We believe the clean-energy business to be worth Rs 200 a share today but with plenty of scope for expansion over time,” Bernstein said in a June 9 report.
The value is nearly 8 percent of the company’s current market price of around Rs 2,500 a share.
It expects RIL to potentially achieve $10 billion of revenue from the new energy business in 2030, which represents 40 percent of the TAM (total addressable market).
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