European alternatives asset manager EQT and Singapore’s Temasek on Wednesday said they have set up a renewable energy platform in India -- O2 Power, with the two investors committing $500 million collectively.

O2 Power will target over four gigawatts of installed capacity across solar and wind, via both Greenfield project development and M&A, the investors said in a statement.

“We seek opportunities to invest in solutions that contribute to a better and more sustainable world. The partnership with EQT to establish O2 Power is consistent with our focus on sustainable living, and in particular, the development of eco-conscious energy solutions," said Nagi Hamiyeh, joint head, Investment Group at Temasek, added.

EQT is investing in the platform through its EQT Infrastructure IV fund. This is EQT Infrastructure’s first investment in India. With this transaction, EQT Infrastructure IV is expected to be 60-65% invested.

The investment is in line with EQT’s thematic approach to invest in sustainable solutions, guided by the United Nations’ Sustainable Development Goals (SDGs), the statement said. Parag Sharma will head the platform as chief executive.

“India presents significant investment opportunities being the second largest renewable energy market in the world and EQT is delighted about teaming up with Temasek and O2 Power. CEO Parag Sharma and his management team have a successful track record and EQT looks forward to work together in creating a future-proofed renewable energy platform," said Fabian Gröne, Partner at EQT Partners and Investment Advisor to EQT Infrastructure.