Sembcorp acquires Vector Green Energy for Rs 2,780 cr
Completion of buyout process in next 3 months will bring Singapore-based group’s gross renewable energy capacity to 8.5GW, closer to its 2025 target of 10GW
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Hyderabad: Singapore-listed utility company Sembcorp Industries Ltd on Sunday said it will acquire clean energy platform Vector Green Energy for Rs2,780 crore to expand its renewable energy footprint in India to 3 gigawatts (GW).
Vector Green Energy, owned by funds managed by the Indian subsidiary of Global Infrastructure Partners, has 519 megawatts of operational (495 MW solar and 24 MW wind) and 64 MW of solar projects under development. The firm reportedly also has 1GW of investment-ready assets in the pipeline.
The completion of the acquisition in the next three months will bring the Singapore-based group's gross renewable energy capacity to 8.5GW, closer to its 2025 target of 10 GW of gross installed renewable capacity, Sembcorp said in a statement. The acquisition complements Sembcorp's existing portfolio which comprises 90 per cent of wind energy projects.
A solar heavy portfolio of Vector Green Energy will balance it and increase Sembcorp's spread from 7 States in India to 13 States. Also, with as much as 90 per cent of operational capacity, Vector Green Energy provides a portfolio that will contribute to cash flows immediately. Vector Green Energy has a 19-year weighted average remaining life of pacts to sell power. It has signed power purchase agreements for all, but 24 MW or 4 per cent of the portfolio.
Vipul Tuli, CEO of South Asia, Sembcorp Industries, said: "This acquisition brings the significant utility-scale solar capacity to our India business, which will complement our existing wind portfolio."
