Sembcorp now possess a balanced portfolio of 3.7 GW of renewable assets, including 2.25 GW of wind and 1.45 GW of solar assets, following this acquisition
The Singaporean energy company, backed by state-owned investor Temasek Holdings Pte, is set to acquire 228 MW of operational wind power assets from Leap Green Energy Pvt Ltd for SGD 70 million and 200 MW from Qinzhou Yuanneng for SGD 130 million, according to the company's statement.
Operating in India for over 12 years across 18 states, Sembcorp will now possess a balanced portfolio of 3.7 GW of renewable assets, including 2.25 GW of wind and 1.45 GW of solar assets, following this acquisition. Last year, it announced the acquisition of Vector Green to add 583 MW of renewable assets in India.
"Sembcorp's wholly-owned subsidiary, Sembcorp Energy (Shanghai) Holding Co Ltd, has signed an agreement with Envision Energy Co Ltd to acquire 100 percent of the share capital in Qinzhou Yuanneng Wind Power Co Ltd (Qinzhou Yuanneng) for an equity consideration of approximately SGD 130 million. Qinzhou Yuanneng owns 200 MW of operational wind assets in Guangxi, China," the statement said.
Separately, its "wholly-owned subsidiary, Green Infra Wind Energy Limited (GIWEL), has signed an agreement with Leap Green Energy Private Limited (Leap Green Energy), an independent power producer in Tamil Nadu, India.
Under the agreement, GIWEL will acquire from Leap Green Energy 100 percent of the share capital in two special purpose vehicles (SPVs) for an equity consideration of approximately SGD 70 million. The SPVs own 228 MW of operational wind assets in Madhya Pradesh, Maharashtra, and Rajasthan, India," it said.
Sembcorp has signed agreements to secure 673 MW of renewables capacity since it announced its 2028 target to achieve 25 GW of gross installed renewables capacity. This includes the proposed acquisition of 245 MW of renewable assets in Vietnam, announced on November 10, 2023. Upon completion of these acquisitions, Sembcorp's gross renewables capacity will reach 12.6 GW globally.
"The acquisitions will be funded through a mix of internal cash resources and external funding and are expected to be completed by the first half of 2024, subject to the fulfilment of applicable conditions precedent in each case, including regulatory approvals," the statement said.
These acquisitions are in the ordinary course of business and will not have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2023, it added.
Sembcorp is a leading energy and urban solutions provider, holding a balanced energy portfolio of 20.1 GW, with 12.6 GW of gross renewable energy capacity comprising solar, wind, and energy storage globally. The company also has a proven track record of transforming raw land into sustainable urban developments, with a project portfolio spanning over 14,000 hectares across Asia.