Singapore-based energy company Sembcorp has agreed to buy 245MW of renewables projects in Vietnam.
Sembcorp said its wholly-owned subsidiary Sembcorp Solar Vietnam had reached an agreement to acquire majority interests ranging from 73% to 100% in various subsidiaries of Gelex Group Joint Stock Company. After the transaction, Sembcorp will add 245MW of operational renewable wind, solar and hydropower assets to its current portfolio in Vietnam, expanding the portfolio in Vietnam to over 450MW.
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The assets have long-term power purchase agreements (PPAs) contracted with state-owned enterprise Vietnam Electricity. The deals were valued at S$218 million (US$160.3 million).
The transaction will be completed in the first half of 2024, according to Sembcorp.
Last week, Sembcorp announced that it would boast 25GW of installed renewables capacity by 2028. To reach this target, the company will invest nearly US$10.5 billion towards renewables across Asia – it operates across ten countries – representing 75% of total investments for 2024-2028.
As of the end of September, the company had 8.7GW of renewables installed capacity – and 3.3GW of projects under construction – up from 2.6GW in 2020, with a target to reach 10GW by 2025.
Sembcorp also has a portfolio of solar projects in China (2.3GW), India (1.2GW), Vietnam (207MW), Singapore (473MW) and Indonesia with 2MW.