Singapore’s Sembcorp Industries will spend a maximum of SGD218 million ($160.3 million) on acquiring majority interests ranging 73-100% in subsidiaries of Vietnam’s multi-sector firm Gelex, consequently adding 245 MW of renewable energy assets to its portfolio in the country.
In a Friday release, Sembcorp said the additional renewable energy portfolio features operational wind, solar and hydropower assets, raising its renewable energy presence in Vietnam to 450 MW and its gross renewables capacity to 12.2 GW in total.
The move is subject to regulatory and other approvals and is expected to reach completion in the first half of next year, the Singaporean firm added.
The to-be-acquired renewable energy assets are underpinned by long-term power purchase agreements (PPA) with state utility Vietnam Electricity (EVN).
Sembcorp and Gelex will continue to explore opportunities in renewable energy in Vietnam, Sembcorp added.
According to Gelex's annual report for 2022, the firm held a renewable energy portfolio of 260 MW, generating 345 million kWh last year. Gelex is conducting a feasibility study for renewable energy projects of 3.9 GW, the report added.