Sembcorp Industries has updated the timeline for completing its acquisition of a 49MW hydropower asset in Vietnam, part of a larger deal to expand its renewable energy portfolio in the country. Regulatory approvals, originally expected by the second half of 2024, are now anticipated in the first half of 2025.
The hydropower asset is one of four renewable energy projects included in a 245MW portfolio Sembcorp agreed to acquire from Vietnam’s Gelex Group Joint Stock Company in November 2023. To date, Sembcorp has completed the acquisition of majority stakes in three subsidiaries, adding 196MW of operational wind and solar capacity to its portfolio. The hydropower component, representing the remaining 49MW, is a critical piece of the acquisition and is expected to significantly enhance Sembcorp’s presence in Vietnam’s renewable energy market.
Once finalized, the hydropower acquisition will bring Sembcorp’s total renewable energy capacity in Vietnam to 455MW, further cementing its role as a key renewable energy player in the region. Globally, Sembcorp’s renewable energy portfolio will grow to 14.4GW, aligning with its strategic goal of accelerating the energy transition.
The assets included in the deal are supported by long-term power purchase agreements with state-owned utility Vietnam Electricity, ensuring steady revenue streams. Sembcorp also confirmed that it has funded the acquisition using a mix of internal cash and external borrowings, with an equity consideration of approximately S$218 million.
Sembcorp stated that it will continue to collaborate with Gelex on exploring further opportunities in Vietnam’s renewable energy sector, leveraging the partnership to drive sustainable energy growth. The company has committed to providing updates on the hydropower acquisition as regulatory milestones are achieved.
This acquisition highlights the growing importance of hydropower in Sembcorp’s strategy to diversify its renewable energy mix while strengthening its commitment to delivering low-carbon solutions across Asia.
