We have entered into an agreement to acquire a 100% stake in Vector Green Energy Private Limited (Vector Green) for approximately H2,780 crore. Vector Green, an independent power producer, owns renewable power generation assets spanning across 13 states in India. Its portfolio includes operational solar capacity of 495 MW and wind capacity of 24 MW. Additionally, they have 64 MW of solar projects currently under development.
Post completion of this acquisition, our gross renewables portfolio in India has totalled 3 GW, comprising 1 GW of solar assets and 2 GW of wind assets. We have already taken over the operations of six out of the 18 large ground-mounted project sites, accounting for a generation capacity of 230MW* of VG assets under self O&M. To enhance operational efficiency, we are implementing generation improvement initiatives, including module replacement. Moreover, we have developed in-house analytics solutions for remote monitoring, which have been successfully deployed to improve overall efficiency
From a financial standpoint, we have funded towards capital expenditure through internal accruals and also initiated discussions with banks to explore opportunities to mobilise debt.
This acquisition marks a significant milestone for us, as it effectively complements our existing wind portfolio. It not only strengthens our renewable energy capabilities but also expands our presence across multiple states in India.
We have received approval for a scheme of amalgamation of Sembcorp Green Infra Limited (SGIL) and Green Infra Wind Energy Limited (GIWEL). This strategic merger is part of our internal restructuring efforts, aimed at harnessing synergies, optimising operational and administrative costs, and streamlining decision-making within our management structure. As the amalgamation completes, GIWEL will serve as the holding entity for Sembcorp’s renewables business in India, enabling us to provide even greater value to our customers and stakeholders.
In FY 2023, we have successfully undertaken numerous greenfield projects catering to the commercial and industries segment, while also expanding our bulk power supply business to DISCOMS. While some projects are still under commissioning, the increased interest in adopting green energy sources for sustainability has presented a significant opportunity for us to expand within the C&I segment. Through our commitment and diligent operational efforts, we have managed and still continuing to transform these projects into live sites by the end of the fiscal year.
Outcome
The acquisition of
Vector Green
has resulted in significant enhancement of our solar portfolio
In our pursuit of establishing a sustainable and robust energy infrastructure, we have acquired strategically located land for the development of renewable energy sites. These locations have been carefully chosen to support our growth ambitions and ensure a consistent and ample supply of power. Additionally, we have achieved a major milestone by successfully securing a highly competitive 400 MW capacity solar project in Rajasthan through a rigorous bidding process. This accomplishment further fortifies our project pipeline and enhances our position in the renewable energy sector.
With these well-planned acquisitions and successful project ventures, we are poised to achieve sustained growth in the renewable energy industry. Our mission to provide clean, dependable, and abundant energy aligns with the needs of both present and future generations.
We have significantly enhanced our digital capabilities to efficiently manage our solar and wind fleets across various states. By harnessing the power of artificial intelligence and machine learning, we can now monitor and control our renewable assets from a centralized location. This cutting-edge technology provides real-time data and performance indicators, allowing us to closely monitor factors such as wind speed, temperature, and power output. Moreover, it empowers us to swiftly detect and comprehend any faults, giving our operations team valuable insights for predictive maintenance purposes.
During FY 2023, we have made substantial strides in enhancing our self O&M (operation and maintenance) and engineering capabilities. The improvements in engineering have been particularly beneficial, allowing us to expand beyond traditional O&M and evolve into a comprehensive turnkey project management approach. As a result, we have transitioned to a selfexecution model, empowering our teams to handle the entire setup of solar and wind facilities independently. Additionally, we have fostered a robust partnership with our supply partners, who has provided invaluable support in this venture.
Our turbines at SECI II wind farm are amongst the tallest in India at a height of
