BlackRock Real Assets-led consortium, which includes Mubadala Investment Company, has entered into a binding agreement with the Tata Power Company to invest in its renewable energy subsidiary, Tata Power Renewable Energy Limited (Tata Power Renewables).As per the deal, BlackRock Real Assets, together with Mubadala, shall invest ₹4,000 crore ($525 million) by way of equity/compulsorily convertible instruments for a 10.53% stake in Tata Power Renewables, translating to a base equity valuation of $4.46 billion (₹34,000 crore). The final shareholding will range from 9.76% to 11.43% on final conversion.Tata Power Renewables is one of the largest renewable energy companies in India. Its vertically integrated operations currently have approximately 4.9GW of renewable energy assets.The proposed investment is expected to fund Tata Power Renewables’ aggressive growth plans.Over the next five years, Tata Power Renewables aims to achieve a portfolio of over 20GW of renewables assets and a market leading position in the rooftop and electric vehicle charging space across India.This newly created platform will consist of five distinct businesses delivering long-term, customer orientated solutions.It will house all renewable energy businesses of Tata Power including those in: Utility Scale Solar, Wind & Hybrid Generation assets; Solar Cell & Module Manufacturing; Engineering, Procurement and Construction (EPC) contracting; Rooftop Solar infrastructure; Solar Pumps and Electric Vehicle Charging infrastructure, said the statement from Mubadala.The broad-based portfolio of assets ensures diversified yet stable revenue sources including 25-year fixed-price PPAs for grid connected utility scale projects, it added.Tata Power Company CEO and Managing Director Dr Praveer Sinha said: “Tata Power Renewables is an industry leader with a broad and deep portfolio of next-generation renewables businesses well placed to scale up rapidly based on its strong and consistent performance over the years.""I am delighted to welcome BlackRock Real Assets and Mubadala to join us to take the renewables business to the next level of growth. The collaboration will support us to pursue exciting opportunities that lie ahead in the coming decades,” he added.India is one of the world’s largest renewable energy markets and has recorded the fastest growing renewable energy supply with over 60% new capacity added over the past four years.Its installed renewables capacity is expected to grow from 150GW currently to 500GW by 2030, to satisfy India’s local energy demand driven by GDP growth and contribute to the government’s decarbonization ambition, as well as support the macro energy transition trends in Asia and around the world.Anne Valentine Andrews, BlackRock’s Global Head of Real Assets, expressed delight at investing alongside Tata Power in this well diversified and vertically integrated renewables business."With one of the largest portfolios of solar and wind assets in the country and a very experienced management team, Tata Power Renewables is at the forefront of India’s ambition to secure greater energy stability for its citizens while positioning its economy for a low carbon future. India’s success in transitioning its energy economy will be crucial to the world’s ability to meet its climate goals,” she stated.Mubadal CEO (Real Estate and Infrastructure Investments) Khaled Abdulla Al Qubaisi, said: “As a responsible investor, we are focused on renewable energy in multiple markets, so we are delighted to invest in Tata Power Renewables to support energy transition efforts in India in partnership with Blackrock Real Assets.""With a proven track record of green and clean energy generation and an experienced management team, Tata Power is one of India’s largest integrated power companies and is well positioned to support the country’s energy independence and transition. We are proud to show our ongoing commitment to India with this investment and look forward to working with Tata Power to capitalize on the growth opportunities ahead,” he added.According to Mubadala, the first round of capital infusion is expected to be completed in June and the balance funds will be infused by end of calendar year 2022.Moelis & Company is the financial advisor to Tata Power, while JP Morgan is the financial advisor to BlackRock Real Assets. Cyril Amarchand Mangaldas & Co are legal advisors to Tata Power while Slaughter & May and AZB Partners are legal advisors to BlackRock Real Assets.