Macquarie's Ed Northam sees India as high-growth market, flags multiple growth drivers: Report

A moderation in green energy asset valuations, along with a supportive policy framework for the energy and infrastructure sectors, is creating investment opportunities in India, The Economic Times reported, quoting a senior Macquarie executive.

Ed Northam, global head of MAM Green Investments (GI), formerly known as Green Investment Group, a specialist renewable energy unit within Macquarie Asset Management (MAM), said India remains a high-growth market backed by multiple drivers.

"A growing demand, demographics, the digital agenda, energy security. These are long-term and secular tailwinds," Northam told ET.

Macquarie has deployed $4.2 billion in India since establishing its office in the country in 1999, with investments spanning roads, green power generation and e-mobility, the report said. The multinational financial heavyweight is looking to scale up its green investments in India and is exploring opportunities in green fuels and the energy transition. GI has made three investments in the country so far.

"I think India, like the rest of the world, has broadly reset its view on value to something that feels pretty, pretty rational," Northam said, as quoted in the report.

He noted that India's open access market has helped expand green power generation almost sixfold in recent years to 300 GW.

"What it takes to match up demand with supply is more complex today than it's ever been," Northam told ET. "There is more friction in the delivery model now, undeniably. And that's through a combination of factors, supply chain challenges, policy agendas around on-shoring and re-shoring."

According to Northam, this environment benefits large-scale, well-capitalised players such as Macquarie, which have the expertise and financial capacity to remain invested over a longer period, the report said.

"I think there is a real premium that you can capture, if you’re able to mobilise on a global scale, but act locally," Northam said. He is based in Singapore.

Macquarie has been an early investor in the green energy sector, mobilising private capital into renewable energy projects. Since making its first investment in renewables in 2005, GI has deployed over $21 billion across 94 investments and more than 4,000 assets spanning the energy transition value chain.

The company currently manages a global portfolio of over 35 GW of operating renewable energy capacity, alongside a development pipeline exceeding 100 GW across onshore and offshore wind, solar and battery energy storage systems (BESS).