Singaporean Sembcorp Green Infra’s wholly owned subsidiary, Sembcorp is reportedly planning to acquire Vector Green Energy for over $343 million (Rs 2,780 crore) in a bid to add 583 MW of renewable assets across India. The company disclosed that it would purchase the stake from well-known U.S private equity firm, Global Infrastructure Partners India-managed Infrastructure Fund II.
Meanwhile, Vector Green is an independent power-producing entity with renewable power generation assets that are spread across 13 Indian states.
The gross renewable energy capacity of Sembcorp, with the completion of the acquisition, will rise to 8.5 GW, pushing it closer towards its 10 GW target by 2025. Apparently, this energy capacity increase is also inclusive of the firm’s proposed 795 MW of solar asset acquisition across China that was announced in November.
Sources further cite that this purchase of Vector Green Energy’s assets will be funded via internal cash resources as well as external borrowings and is anticipated to be completed by Q1 of 2023.
Group president and CEO, Sembcorp Industries, Wong Kim Yin mentioned that Sembcorp will remain committed to expanding its renewables portfolio across India, which is one of the fastest-growing renewables markets worldwide.
Wong also revealed that this move is in line with the brown-to-green transformation strategy of the Group.
According to the CEO, South Asia, Sembcorp Industries, Vipul Tuli, this acquisition brings substantial utility-scale solar capacity to the firm’s India business for complementing the existing wind portfolio and broadening their renewable energy capabilities as well as presence across the Indian states.
Reportedly, India accounts for a 160.92 GW installed renewable energy capacity, with nearly 74.76 GW under implementation. An Arthur D Little report claims that the country will need $300 billion in additional investment for completing the 500 GW energy capacity target through 2030.
For the record, Torrent Power was also in talks of purchasing Vector Green Energy from Global Infrastructure Partners, in addition to Sembcorp.