Singapore's Sembcorp to monetise India assets; expand renewable energy capacity

Singapore utility group Sembcorp Industries hopes to monetise some of its operational assets in India over the next 12-18 months and aims to grow its renewable energy capacity through organic and inorganic routes to drive the ambitious green energy target, a top executive told ET.

Last month, Sembcorp Industries announced a strategic plan to shift its portfolio from conventional energy to renewable energy by quadrupling the green energy capacity to 10 gigawatts (gw) by 2025 from 2.6 gw in 2020. The company’s India portfolio will grow in line with the global target, with focus on solar energy projects.

The company will actively bid for solar power project bids by the central and state government and is scouting for acquisitions as well, Vipul Tuli, chief executive officer (South Asia) at Sembcorp, told ET.

“Where India fits into Sembcorp’s global strategy is that it’s scalable, it is large, and it is an attractive renewable market. But most importantly, it is a cetre of capabilities for resources, bid optimisation, project development, digital operations, operations and maintenance, and life cycle engineering,” he said.

Sembcorp in India has a portfolio of 4.7 gw, including projects under execution. Of this total capacity, over 2.1 gw is renewable energy capacity.

“We are not going to add thermal power capacity anywhere. We are among the top three players in wind energy in India, so wherever there are good opportunities, we are definitely going to look at those. But we would like to balance the portfolio and add more solar power. Right now, solar power is going through a very uncertain period, so we will add capacity, but cautiously,” Tuli said.

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