EDP Renewables (EDPR), a Spain-based renewable energy company, has acquired a majority stake in Singapore-based solar energy company Sunseap. The deal values Sunseap at S$1.1 billion (~$815.18 million).

With this investment, EDPR is expected to expand its renewables platform in Asia. This will also enhance the deployment of a portion of its $22 billion investment plan through 2025. Earlier this year, the company had announced its plans to double its solar and wind energy generation capacity by 2025.

The transaction will enable knowledge transfer from EDPR to Sunseap for the Asian market, including wind energy while creating opportunities for collaboration in energy storage and green hydrogen.

Sunseap said that EDPR’s investment comes when it is expanding its footprint in the region. Sunseap is developing a 2.2 GW floating solar project and an energy storage system in Indonesia’s Batam Island and other regional interconnection projects to export renewable energy to provide electricity to data centers in Singapore.

EDPR is a listed company with a market cap of $28 billion. The company has 13 GW of installed wind and solar capacity. It designs, develops, manages, and operates renewable power projects across 17 markets in Asia, Europe, and the U.S. It has over 2 GW of contracted solar projects across Asia on more than 3,000 buildings in Singapore.

Frank Phuan, Co-founder and Chief Executive Officer of Sunseap, said, “With EDP Renewables onboard, we look forward to growing our customer base, achieving greater scale and efficiency through talent access, portfolio diversification, and mergers and acquisition (M&A).”

Miguel Stilwell d’Andrade, CEO of EDP and EDPR, said, “The strategy and vision of Sunseap is a perfect fit to EDPR’s role within the ongoing energy transition. Moreover, it brings local knowledge and a new enriching culture to the company.”

Earlier this month, Sunseap Group secured an $85.8 million loan for its SolarNova 4 project to install solar systems across more than 1,200 public housing blocks and 49 government sites in Singapore.

According to Mercom’s 9M and Q3 2021 Solar Funding and M&A Report, there were 29 solar M&A transactions in Q3 2021 compared to 34 M&A transactions in Q2 2021. By comparison, there were 17 transactions in Q3 2020. In 9M 2021, there were 83 transactions compared to 42 deals in 9M 2020.