Singapore-based Sembcorp is looking at acquisitions of solar and wind energy projects in India as it chases a strategic goal to shift its portfolio from brown to green by quadrupling renewable energy capacity. Sembcorp, which has invested about Singapore dollar 6.5 billion (about Rs 350 billion) in electricity-generating projects in India, is open to buying under-construction as well as completed solar and wind projects, said its India head Vipul Tuli.
While decarbonisation has picked up speed significantly, urbanization has fueled the need for much more electricity.
"We have decided to move the portfolio from brown to green," Sembcorp Energy India Ltd (SEIL) Managing Director Vipul Tuli said adding the firm was targeting 70 per cent of profit from sustainable solutions portfolio in 2025, up from 40 per cent in 2020.
The strategic plan calls for shifting its portfolio from 'brown to green' that includes quadrupling renewable energy capacity to 10 GW by 2025 from 2.6 GW in 2020. The company has committed to halving its greenhouse gas (GHG) emissions by 2030, from a 2010 baseline, and achieving net-zero emissions by 2050.
"And India is very central for Sembcorp," he said. "A little less than half of Sembcorp assets are in India." SEIL has energy assets totaling 4.8 GW capacity in operation and under construction in India. Of this, 2.1 GW is renewable energy projects.
"We have a strong track record of delivering renewable energy projects and an O&M capability which delivers operational efficiency higher than peers at lower costs," he said. Going forward, the is to significantly grow renewable energy portfolio in line with the global 2025 10 GW target, he said.
This would be through bidding for central and state projects as well as acquisitions and expansions, he said. "We are looking at a number of acquisitions at the moment. These could be (wind and solar) farms adjacent (to SEIL projects), or they could be good projects with a pact to sell electricity," he said.
Also, under construction projects could be another key target as Sembcorp has a good track record of commissioning, he said. "If it is already running project, because of our superior operations and maintenance (O&M) capability, we could buy at that stage also."
