Singapore-based renewable energy company Sembcorp Industries has signed agreements to acquire 428 MW of wind energy assets in China and India through its subsidiaries, Sembcorp Energy (Shanghai) Holding and Green Infra Wind Energy Limited (GIWEL).

Sembcorp Energy (Shanghai) Holding is set to acquire 100% of the share capital in Qinzhou Yuanneng Wind Power. The move involves an equity consideration of approximately $130 million.

Qinzhou Yuanneng owns and operates 200 MW of wind assets in Guangxi, China.

In the second agreement, Sembcorp’s subsidiary, GIWEL will acquire 100% of the share capital in two special purpose vehicles (SPV) for an equity consideration of approximately $70 million from Leap Green Energy.

These SPVs collectively own and operate 228 MW of wind assets in Madhya Pradesh, Maharashtra, and Rajasthan. The company said the move aligns with Sembcorp’s strategy to enhance its footprint in India.

Sembcorp anticipates the completion of these transactions by the first half of 2024, contingent upon regulatory approvals.

These acquisitions contribute significantly to Sembcorp’s pursuit of its 2028 target to achieve 25 GW of gross installed renewables capacity. The company has entered into agreements for 673 MW of renewable capacity, including a proposed acquisition in Vietnam.

After completing these acquisitions, Sembcorp’s gross renewables capacity is set to reach 12.6 GW globally.

The funding for these acquisitions will be a combination of internal cash resources and external funding.

Sembcorp recorded a net profit of S$602 million (~$449.7 million) in the first half of 2023, an increase of 55% year-over-year, with higher contributions from both conventional energy and renewables segments.

As of June 2023, the company’s gross installed renewables capacity was 8.6GW, and the gross renewables capacity (installed and under development) totaled 11.9GW.

Earlier in March, in an exclusive interview with Mercom, A. Nithyanand, Business Head – Renewables, Sembcorp India, talked about the company’s plans for future growth in India.