Singapore's Sembcorp adds 196MW Vietnam renewables in latest acquisition

Singapore’s giant Sembcorp Industries has acquired majority interest in three subsidiaries of Vietnamese conglomerate Gelex, adding 196 MW of operational wind and solar assets to its portfolio in the country.

In a Wednesday statement, Sembcorp Industries said the acquisition was completed by its wholly-owned subsidiary Sembcorp Solar Vietnam Pte Ltd. As part of the move, Sembcorp will later acquire a 73% stake in another subsidiary of Gelex, which owns a 49 MW hydropower asset.

The firm had announced the plan to add the combined 245 MW to its Vietnam portfolio last November. It said then that it would spend a maximum of SGD218 million ($160.3 million) on the acquisition. The renewable energy assets in the deals are underpinned by long-term power purchase agreements (PPA) with state utility Vietnam Electricity (EVN), it added.

The acquisition of the 49MW hydropower asset is subject to regulatory approvals and is expected to be complete in the second half of 2024.

Once the whole acquisition is completed, Sembcorp will increase its gross renewable energy capacity in Vietnam to 455 MW and its overall figure to 14.4 GW.

Sembcorp and Gelex will continue to explore opportunities in renewable energy in Vietnam, the Singapore giant said.

According to Gelex’s annual report 2023, its energy projects in Vietnam, with a total capacity of 245 MW, generated 585 million kWh last year. The projects are Gelex Quang Tri 1, 2, 3 wind farms (Gelex Quang Tri); Huong Phung 2 and 3 wind farms (Gelex Huong Phung) in in the central province of Quang Tri; Ninh Thuan solar farm (Gelex Ninh Thuan) in the central province of Ninh Thuan; and Song Bung 4A Hydropower (Phu Thanh My) in the central province of Quang Nam.