- Sembcorp Industries’ Chinese subsidiary has acquired 35% stake in 1.9 GW operational wind and solar power portfolio
- It reached close to RMB 1.5 billion value for the deal with SDIC New Energy of China
- The deal includes 21 wind and 9 solar PV facilities in 7 Chinese provinces
Singapore based energy and urban development company Sembcorp Industries is expanding its Chinese renewables portfolio fast with the acquisition of a 35% stake in 1.9 GW solar and wind energy portfolio of SDIC New Energy for an equity of close to RMB 1.5 billion ($320 million).
SDIC New Energy is Shanghai SDIC Xieli Development Equity Fund Partnership entity which itself is owned by the Chinese state-owned investment holding company State Development Investment Corporate Group (SDIC). Remaining 65% stake in the portfolio is held by SDIC Power.
The entire portfolio acquired by Sembcorp Energy (Shanghai) Holding Co. Ltd. comprises 30 operational assets, including 21 wind and 9 solar facilities, spread across 7 Chinese provinces. Solar power projects range between 9 MW to 30 MW. The deal is expected to complete in H1/2022.
This deal follows Sembcorp’s November 2021 announcement for the acquisition of 98% stake in 658 MW operational solar and wind assets from CGN Capital Partners Infrastructure Fund III and its affiliates. Back then, the company said these assets provide it a scalable renewable platform to drive further growth in China.
Sembcorp sees China a key market for its 10 GW gross installed renewables capacity by 2025 ambition. With the addition of 658 MW and 1.9 GW assets, Sembcorp has now expanded renewable energy gross capacity to 6.1 GW.
“China is an important part of our brown to green transformation plan. We are pleased to partner SDIC Power, to grow the joint venture together,” said Sembcorp Industries Group President and CEO Wong Kim Yin.