Brookfield partners to launch European renewable energy platform

Brookfield Asset Management is entering into a joint venture with Mitsubishi HC Capital to run a portfolio of contracted, operative renewable energy assets in Europe, with potential to expand investments to Australia.

The platform, expected to launch in the second half of the year, will be jointly controlled by Mitsubishi HC Capital and Brookfield, where the latter will be responsible for the operational aspect. Future asset acquisitions will be subject to approval from both entities, with each contributing on a pro rata basis, they said.

The seed portfolio comprises approximately 570 megawatts (MW) of installed capacity diversified across the UK, Spain, Sweden, Finland, France and Ireland, with an equity value of about $658 million (€400m).

The assets are under long-term power purchase agreements, which have a weighted average remaining term of approximately 10 years, they said. Collectively, the assets offer a "highly stabilised" cash flow profile amid strong downside protection and resilience across market cycles.

The platform is also evaluating potential future acquisitions of additional renewable energy assets in Australia, including onshore wind, utility-scale solar and battery energy storage facilities.

Brookfield's Energy Group deputy chief investment officer Ignacio Paz-Ares said: "We are pleased to partner with Mitsubishi HC Capital to launch a scaled renewable energy platform anchored by a diversified seed portfolio of high-quality operating assets."

"With the potential to deploy significant additional capital into a pipeline of renewable power assets, the platform is well positioned for growth across Europe and Australia."

Meanwhile, Mitsubishi HC Capital general manager and senior corporate officer Hayato Shinada said the initiative is well aligned with the business' portfolio strategy.

"By combining Mitsubishi HC Capital's financial and investment expertise with Brookfield's asset management capabilities, we will build and scale our business platform to deliver reliable and sustainable operations," he said.

"In addition, we will leverage expertise in development and operations gained through our broader European renewable energy partners, including European Energy A/S. As the importance of renewable energy continues to grow, particularly from an energy security perspective, we will leverage our European platform to expand globally and pursue growth opportunities, driving long-term value creation."