Sembcorp will acquire 892 MW of renewable capacity from SPIC in China

Sembcorp Energy Shanghai, a subsidiary of Singapore’s Sembcorp Industries, has signed an agreement with Wuling Power, a subsidiary of China’s State Power Investment Corporation Limited (SPIC), to acquire 830MW of installed renewable capacity and 62MW of capacity under development in the provinces of Hunan and Guizhou (southern China).

Sembcorp will acquire a 45.3% interest in the Hunan Xingling New Energy joint venture for a total equity consideration of CNY1,1bn (US$204m), while Wuling Power will retain the remaining 54.7% interest in Xingling. Xingling New Energy will become SPIC’s first renewable energy joint venture with a foreign investor. Completion of the transaction is expected in the first half of 2023, subject to customary conditions precedent including regulatory approvals

With this acquisition, Sembcorp will reach a portfolio of 9.4 GW of renewable capacity globally. The company targets 10 GW of installed renewable capacity by 2025. As of 2022, SPIC has an installed renewable energy portfolio of more than 80 GW.