Sembcorp acquires Vector Green

From pv magazine India

Singapore-based Sembcorp Industries (Sembcorp) has agreed to acquire Mumbai-based renewables producer Vector Green Energy for SGD 474 million ($345 million). Its wholly owned Sembcorp Green Infra subsidiary has signed an agreement with India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India, to acquire a 100% stake in Vector Green Energy.

Vector Green is a private-sector power producer with a renewables portfolio of 583 MW across 13 Indian states. The portfolio includes 495 MW of solar capacity and 24 MW of wind capacity in operation, with 64 MW of solar projects under development. With the acquisition of Vector Green’s assets, Sembcorp’s gross renewables portfolio in India will total 3 GW, including 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,” said Wong Kim Yin, group president and CEO of Sembcorp Industries. “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.”

Sembcorp will fund the acquisition through internal cash resources and external borrowings. The acquisition is expected to complete 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,” said Vipul Tuli, CEO of South Asia for Sembcorp Industries. “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.”