EDP Renewables (EDPR) has signed an agreement to acquire a 87.4% stake in Singapore’s solar energy company Sunseap for €600m.
The deal values the South East Asian renewables firm at €870m.
Sunseap follows build, own and operate model for rooftop, ground-mounted utility-scale and floating solar PV projects.
With a portfolio of 5.5GW renewable projects at different stages of development, Sunseap has presence across nine markets that include Singapore, Vietnam, Malaysia, Indonesia, Thailand, Cambodia, China, Taiwan and Japan.
The company’s portfolio consists of 540MW operating and under construction solar projects and a 4.8GW pipeline in different development stages. It also has 127MW of secured capacity.
The acquisition is expected to provide EDPR with a renewables platform to tap growth in Asia Pacific (APAC).
Upon completion of the transaction, the Portuguese company will expand its presence to 25 international markets.
EDP and EDP Renewables CEO Miguel Stilwell d’Andrade said: “We are delighted to partner up with Sunseap for the Asian Pacific markets, creating a new regional platform and making EDPR a truly global renewables energy player.
“The strategy and vision of Sunseap is a perfect fit to EDP´s leading role within the ongoing energy transition and its local knowledge and track-record in the Asia Pacific region, together with EDPR’s scale and technological expertise, will enable us to fully tap the potential of such markets.”
Sunseap is also expanding its presence in the region, with a 2.2GW floating photovoltaic farm and an energy storage system in Indonesia’s Batam island.
In July this year, the company partnered with Badan Pengusahaan Batam (BP Batam) to build the project, which involves an investment of $2bn.
Construction on the project is expected to commence in 2022, with completion in 2024.
Once operational, the floating solar farm is expected to produce over 2,600GWh of electricity and potentially offset more than 1.8 million metric tonnes of carbon emissions annually.
Sunseap Co-founder and President Lawrence Wu added: “EDP Renewables is one of the world’s leading renewable energy companies and its investment marks a significant milestone for Sunseap.
“There is much to do for the Sunseap group in the coming years and we are excited to find a partner who supports our mission, values and ambition. Their global reach in 17 large markets will also create opportunities for collaboration and partnership which is key to energy transition.”
