The world’s leading renewable energy company, EDP Renováveis (EDPR) acquired a majority stake in Sunseap for 1.1 billion Singapore Dollars ($815 million), to reinforce its presence in the Asia-Pacific region.
EDPR, 75% owned by Energias de Portugal (EDP Group) had late-stage talks to buy out the stakes held in Sunseap by Thai energy firm Banpu PCL, Singapore state investor Temasek Holdings, and other investors, last week.
Banpu sold its 47.5% shareholding in Sunseap for about S$490 ($363 million) to EDPR. EDPR also bought the stakes of other shareholders, increasing its position to 87.4% in Sunseap. This share can rise to 91.4% when the deal is fully concluded.
The co-founder and CEO of Sunseap, Frank Phuan said “We are delighted to welcome EDP Renewables as a major shareholder.
As one of the major players in clean energy solutions in South East Asia, the investment will support Sunseap to expand within the Asian renewable market.
EDP and EDPR’s CEO, Miguel Stilwell d’Andrade said about the deal “We are delighted to partner up with Sunseap for the Asia-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 with 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.”
The acquisition will prove EDPR’s global leadership position in renewable energy platform to tap growth in the Asia Pacific through Sunseap that is fully complementary to EDPR’s footprint, geographically, and technologically.
The transaction enables EDPR to establish its presence in the APAC region with 540 MW of operational and under-construction solar projects, 127 MW of secured capacity, and a portfolio including 5.5 GW of renewable projects at different stages of development.
In addition to the deal, EDPR has given consent to share its knowledge and expertise of wind energy with Sunseap and create joint ventures with the company on energy storage and green hydrogen projects.
EDPR currently has a growth of over 200 GW/year in the renewable market, representing ~75% of the expected global growth (2020-2030).
Sunseap Group has already obtained $85.8 million in green financing for the SolarNova 4 project, the largest clean energy project in Singapore to date, set to install PV systems across 1,200 plus public housing blocks and 49 Government sites. With a potential of up to 102 MWp, SolarNova 4 is estimated to generate 96,775 MWh.
Sunseap is expanding its presence in the Asian region with a 2.2 GW floating solar PV farm, spanning over 1600 hectares on Indonesia’s Batam island, after securing a memorandum of understanding (MoU) with the Indonesian government authority BP Batam.