Sembcorp Industries Acquires 300 MW Solar Project in Rajasthan from ReNew Energy

Singapore-based Sembcorp Industries has acquired a 300 MW solar power project in Rajasthan from ReNew Energy Global Plc for an enterprise value of $191 million. The transaction, carried out through Sembcorp’s subsidiary, Sembcorp Green Infra, marks a significant step in expanding the company’s renewable energy footprint in India. 

The project has been operational since November 2021 and is connected to the national grid, operating under a 25-year power purchase agreement with Maharashtra State Electricity Distribution Company.

Completion Timeline and Funding

The acquisition is expected to be completed in the first half of 2026. Sembcorp Industries plans to fund the purchase through a combination of internal cash resources and external borrowings. The deal strengthens Sembcorp’s position in the Indian renewable energy market while contributing to its global expansion goals.

Impact on Renewable Energy Capacity

With the addition of the 300 MW Rajasthan solar project, Sembcorp’s gross renewable energy capacity in India will rise to 6.9 GW, including projects under development. On a global scale, the company’s total renewable energy capacity will increase to 19.3 GW once all pending acquisitions are accounted for. This expansion aligns with Sembcorp’s broader strategy to grow its portfolio in the clean energy sector.

ReNew Energy’s Capital Recycling Strategy

ReNew Energy, a major renewable energy player in India and listed on Nasdaq, is selling the asset as part of its capital recycling model. This approach allows the company to divest operational projects and reinvest the capital into new developments. The transaction is expected to generate approximately $98 million in cash inflow for ReNew, supporting its ongoing project pipeline and growth plans.

Significance for the Indian Renewable Sector

The Rajasthan solar project acquisition highlights the growing interest of international investors in India’s renewable energy market. With supportive policies and long-term power purchase agreements in place, India continues to attract investments in large-scale solar and clean energy projects. 

Read more:India Targets 1 Crore Rooftop Solar Homes by 2027

Conclusion

Sembcorp Industries’ acquisition of the 300 MW solar project in Rajasthan reflects the ongoing consolidation and growth in India’s renewable energy sector. The deal not only strengthens Sembcorp’s renewable portfolio in the country but also supports ReNew Energy’s capital recycling strategy. 

As India’s renewable energy capacity continues to expand, such transactions indicate a stable and attractive investment environment for both domestic and international players.

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