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Sembcorp Green Infra, a wholly-owned subsidiary of Singapore-based Sembcorp Industries, will acquire Vector Green Energy for about Rs 2,780 crore (S$474 million), a move that will help it add 583 MW of renewable assets in India.
The company will acquire the stake from India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India, Sembcorp Industries said in a statement.
Vector Green is an independent power producer with renewable power generation assets spread across 13 Indian states. Its portfolio includes 495 MW of solar capacity and 24 MW of wind capacity in operation, with 64 MW of solar projects under development. Including Vector Green, Sembcorp’s gross renewables portfolio — installed and under development — in India will total 3 GW, comprising 1 GW of solar assets and 2 GW of wind assets.
“Sembcorp remains committed to growing its renewables portfolio in India, one of the fastest growing renewables markets in the world. This acquisition is aligned with the group’s brown to green transformation strategy. With the completion of this acquisition, Sembcorp’s gross renewable energy capacity will increase to 8.5 GW, pushing us closer towards our 2025 target of 10 GW,” Wong Kim Yin, group president and CEO, Sembcorp Industries, said.
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The increase to 8.5 GW of gross renewable energy capacity also includes the company’s proposed acquisition of 795 MW of solar assets in China announced in November.
The acquisition of Vector Green Energy’s assets, which will be funded through internal cash resources and external borrowings, is expected to be completed by the first quarter of 2023.
“This acquisition brings significant utility-scale solar capacity to our India business, which will complement our existing wind portfolio. It also broadens and deepens our renewable energy capabilities and presence across states in India, and positions us well for further green growth in the country,” Vipul Tuli, CEO of South Asia at Sembcorp Industries said.
Apart from Sembcorp Industries, Torrent Power was also in talks to buy Vector Green Energy, the clean energy platform of US private equity firm Global Infrastructure Partners.
India has an installed renewable energy capacity of 160.92 GW, with 74.76 GW under implementation. According to a report by Arthur D Little, India will need an additional investment of about $300 billion to complete the 500 GW energy capacity target by 2030. With 165 GW generation capacity already in place, the country is on the right trajectory to meet its goal of having 50% of energy needs through the renewable portfolio, it said
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