A wholly owned subsidiary of Singapore-based energy company Sembcorp Industries has secured a deal to acquire Indian independent power producer Vector Green Energy.
Sembcorp Green Infra has signed an agreement with a fund managed by Global Infrastructure Partners India to buy 100% of Vector Green for a base equity consideration of approximately INR27.8 billion (US$342 million).
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With renewables power generation assets in 13 Indian states, Vector Green’s portfolio includes 495MW of solar capacity and 24MW of wind capacity in operation as well as 64MW of PV projects under development.
The acquisition will see Sembcorp’s portfolio of installed or under-development solar assets in India reach 1GW.
Sembcorp said that with the completion of the deal, which is expected to take place in Q1 2023, its gross renewables capacity will reach 8.5GW, putting the company closer to its target of having 10GW by 2025.
“This acquisition brings significant utility-scale solar capacity to our India business, which will complement our existing wind portfolio,” said Vipul Tuli, CEO of South Asia at Sembcorp Industries.
Sembcorp is jointly developing a pipeline of up to 1.5GW of solar and wind projects in Vietnam as part of an agreement signed last year with Bamboo Capital Group.
Last year, Sembcorp also completed a 60MW floating solar plant on a reservoir in Singapore. Featuring 12,556 Trina Solar modules, the Tengeh Reservoir project has a 25-year power purchase agreement in place with Singapore’s national water agency PUB.
The company is part of a consortium that plans to develop a 1GWp solar project in Indonesia that would export power to Singapore under a policy from the city-state that aims to support the import of up to 4GW of low-carbon electricity by 2035.