The company had said previously that it aims to grow the profit contribution from its sustainable solutions portfolio to 70 per cent from 40 per cent by 2025
In efforts to shift its portfolio from brown to green, Singapore-based energy development company Sembcorp is eyeing to acquire solar and wind energy projects in India to increase its renewable energy capacity.
Sembcorp’s India head Vipul Tuli said that the company is open to buying under-construction as well as completed solar and wind projects. Sembcorp had earlier invested about Rs 35,000 crore in electricity-generating projects in India.
The company had said previously that it aims to grow the profit contribution from its sustainable solutions portfolio to 70 per cent from 40 per cent by 2025.
It now aims to grow its renewable energy portfolio at a compounded annual growth rate (CAGR) of 30 per cent and its integrated urban solutions portfolio at a CAGR of 10 per cent by 2025.
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. Sembcorp Energy India Ltd (SEIL) has energy assets totalling 4.8 GW capacity in operation and under construction in India. Of this, 2.1 GW is renewable energy projects.
As per a PTI report, Tuli explained that going forward, the company aims to significantly grow its renewable energy portfolio in line with the global 2025 10 GW target through bidding for central and state projects, as well as acquisitions and expansions.
Also, under construction projects could be another key target as Sembcorp has a good track record of commissioning, he said. “If it is an already running project, because of our superior operations and maintenance (O&M) capability, we could buy it at that stage also.”
Tuli, however, did not give details of projects the company may be looking for acquisitions.
Referring to SEIL’s parent Singapore firm, “Unlike the fund-driven players, for us, there is no limit. We have a strong shareholder. We are committed to 10 GW and we have enough visibility for that target. Show me a viable project and funding will be there,” he said.
Tuli said the firm was in talks with some players but refused to name them.
The company has committed to halving its greenhouse gas (GHG) emissions by 2030, from a 2010 baseline, and achieving net-zero emissions by 2050.
