Brookfield has appointed former Enfinity Global South Asia CEO Vignesh Nandakumar to lead its newly-launched Indian renewable energy financing platform Lumara, according to a source familiar with the appointment.

Brookfield announced the establishment of Lumara on Thursday (30 July), with a plan to provide USD 600m in credit to renewables developers to fund new projects at preparatory stages.

The firm did not respond to a request for comment on Nandakumar’s appointment.

Lumara’s funding will help developers address construction bottlenecks, including delays in contracting power purchase agreements (PPA), slow grid connection queues, site development issues, and prolonged land acquisition timelines, Brookfield said in the announcement.

In particular, it will provide funding to developers to secure land and interconnection rights before obtaining a PPA.

It will be anchored by an initial portfolio of over 6 GW of capacity spread across solar, wind and battery energy storage systems.

“The business is well-positioned to cater to the decarbonization targets of commercial and industrial (C&I) customers, including global corporates and hyperscalers, and the government, by providing highly flexible power solutions and predictably service multi-year renewable energy requirements of these consumers at scale,” Nawal Saini, Brookfield’s managing partner and head of energy for South Asia and the Middle East, said in today’s announcement. 

The North American fund manager will invest in Lumara through its Catalytic Transition Fund (CTF), a dedicated strategy for deploying capital into clean energy and transition assets in emerging markets, according to the announcement.

Infralogic reported last month that Brookfield was planning to establish a differentiated C&I platform, to be headed by Nandakumar.

The problem Lumara seeks to address is due largely to the common practice where renewable energy developers usually first secure a power purchase agreement and only later select a site and order equipment. This can make it difficult to adhere to project timelines. Starting work prior to securing a PPA would ensure a certainty in the cost structure, timelines, design, and risk profile for developers.

“Providing credit solutions is one of the strategies that Lumara will employ. Such solutions will be provided to developers to advance the development of the sites and getting them construction ready,” Brookfield said in an email to Infralogic.

Lumara will also look to finance projects that will sell power under a merchant strategy, without necessarily waiting for a PPA, Brookfield said in the email.

Brookfield has about 45 GW of wind and solar assets in operation as well as in the pipeline in India. Lumara is the second such initiative in India targeting the preparatory stages of projects.

Suzlon’s devco model

Last month, Pune-based wind turbines manufacturer and contractor Suzlon launched its “devco model” to partner with developers in the initial stages of projects. It said then that it aims to address construction bottlenecks, including long waiting times to connect to the grid. The waiting list for grid connections goes all the way to 2032 in Rajasthan and up to 2028 in other states, industry officials have previously told Infralogic.

Speeding up project development prior to securing PPAs will help project sponsors as well as transmission operators to plan ahead, potentially ensuring timely delivery, Suzlon said. It plans to use its own funds to do the seed capital work and will hand over the project vehicle to clients once initial preparations including land clearances and permits are completed.