ReNew In Talks With Sembcorp To Sell 350 MW Assets: Report

ReNew In Talks With Sembcorp To Sell 350 MW Assets: Report

According to several media reports, Indian renewable energy company ReNew Energy Global Plc has initiated discussions to sell a portfolio of solar projects with a combined capacity of 350 MW to Singapore’s Sembcorp Industries Ltd

The reports also said that earlier ReNew had sought to sell off a much larger 1.1-GW portfolio which included 750 MW of wind power assets but the seller could not seal an agreement due to a valuation mismatch about the worth of the wind capacities.

As mentioned in the report, the cumulative worth of the assets to be sold to a Singapore-based firm stands at US $241 million. Further, the revenues from the sale would be utilised to fund the building of other new clean energy projects.

The larger deal had attracted a non-binding offer from Indian energy and power company Torrent Power, according to a newspaper report. Earlier this year, ReNew agreed to sell a 300-MW solar farm in Rajasthan in a deal with a total enterprise value of USD 199 million. The sale was part of the company’s strategy to enhance shareholder value through capital recycling and investment into higher-return opportunities.

Meanwhile, renewable energy company Sembcorp Industries (Sembcorp) announced last month that it has, through its wholly-owned subsidiary Green Infra Wind Energy Limited completed the acquisition of 100% of the share capital in two special purpose vehicles (SPVs) of Leap Green Energy Private Limited. The SPVs own 228MW of operational wind assets in Madhya Pradesh, Maharashtra, and Rajasthan, India. Apart from acquisitions in India, Sembcorp has also made acquisitions in China, where it has signed an agreement with Envision Energy Co., Ltd to acquire 100% of the share capital in Qinzhou Yuanneng Wind Power Co., Ltd, (Qinzhou Yuanneng) for an equity consideration of approximately S$130 million

Sembcorp Industries (Sembcorp) recently posted a strong performance for the year 2023 (FY2023). They recently announced that they made a turnover of S$7.0 billion compared to S$7.8 billion in FY2022.