SDIC New Energy’s portfolio consists of 30 operational wind and solar PV assets. It has a total gross installed capacity of about 1.9GW located across seven provincial regions in China.
SDIC Power, the public-listed power arm of SDIC, holds the balance of 65% interest in SDIC New Energy.
“We are committed to achieving our group target of 10GW of gross installed renewables capacity by 2025. 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. Along with our recently announced 658MW acquisition, our group renewables portfolio is expected to reach a gross capacity of 6.1GW,” says Wong Kim Yin, group president and CEO of Sembcorp Industries.
Alex Tan, CEO of China, Sembcorp Industries, adds “Sembcorp is keen to build up our renewables portfolio in China, the world’s largest and fastest-growing renewables market. SDIC Power is a top SOE power company in China, with a strong track record and capabilities in the China power and clean energy industry. We believe we have complementing strengths, and we are committed to work alongside SDIC Power to drive further growth in renewables through this joint venture.”
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The investment will be funded through a mix of internal cash resources and external borrowings. The acquisition is expected to be completed in the first half of 2022.
The acquisition is expected to be accretive to earnings from the first year of the acquisition, according to Sembcorp.
As at 9.01am, shares in Sembcorp are trading 1 cent lower or 0.52% down at $1.92.
Photo: Sembcorp
