Singapore-based energy infrastructure group Sembcorp Industries has said it will transform its portfolio 'from brown to green' and achieve 25 GW gross installed renewables capacity by 2028 as part of its energy transition strategy.
This will be about a tenfold growth from 2.6 GW gross installed renewables capacity in its portfolio at the end of 2020. At the end of 9M/2023, Sembcorp had installed 8.7 GW renewables capacity with another 3.3 GW under construction, making up 61% of the group's energy portfolio that's spread across Southeast Asia, China, India, the UK and the Middle East.
While the company does not specify individual capacity of renewable energy technologies it will include, the focus will be strengthening capabilities in wind, solar and energy storage solutions (ESS). It is active in ground mounted, floating, rooftop and concentrated solar technologies.
It plans to invest close to SGD 10.5 billion ($7.8 billion) to support the growth of renewables, making up 75% of the planned investments under the strategic plan for 2023-2028.
"Our vision is to be a leading renewable energy player in Asia, to drive energy transition and sustainable development. The 2023-2028 strategy provides a clear direction for Sembcorp for the next five years and we are well-positioned to capture tremendous opportunities in the key markets and create value for our stakeholders," said Group President and CEO of Sembcorp Industries, Wong Kim Yin.
It will continue to operate the company's existing gas assets that the management says 'support Asia's need for energy.' The cash flow from this business that will contribute meaningfully through 2028 will be used to fund the growth of the renewables segment, it added.