Sembcorp Industries Ltd, a Singapore-based energy group backed by sovereign wealth fund Temasek Holdings, has announced the signing of an acquisition agreement with ReNew Pvt Ltd for a solar unit located in India for SGD246mn ($190.02mn). The transaction, conducted through one of its subsidiaries, aligns with the group’s strategy to strengthen its renewable energy portfolio in the Indian subcontinent.
The target company, ReNew Sun Bright, operates a 300-megawatt solar power plant located in the northwestern Indian state of Rajasthan. The plant entered commercial operation in November 2021 and operates under a 25-year power purchase agreement with the state-owned electricity distribution company. The facility is fully operational.
Expansion of energy portfolio in India
The addition of this unit will bring Sembcorp’s total installed and development capacity in the country to 6.9 gigawatts. The acquisition reflects a broader strategy to consolidate assets in one of Asia’s fastest-growing markets for large-scale solar projects. The company has already undertaken several expansions in India’s renewable sector, focusing on high-sunlight regions with increasing energy demand.
India is currently targeting 500 gigawatts of clean energy capacity by 2030, up from about 165 gigawatts today. In this context, acquisitions of operational assets by international groups offer a way to scale up generation capacity without the delays associated with construction.
Strategic positioning and long-term visibility
The ReNew Sun Bright project offers contractual visibility through its 25-year supply agreement with a public utility, reducing market risks for the Singaporean investor. Acquiring mature assets is a preferred approach for Sembcorp in high-growth regions, where regulatory stability and long-term contracts provide revenue certainty.
The deal comes amid a competitive environment marked by increased interest in India’s energy infrastructure. Many companies are seeking to leverage the country’s energy transition goals while securing predictable returns through structured contractual frameworks.
