EDP Renewables acquires Sunseap for US$815M, to set up clean energy hub in Singapore

EDP Renewables, the world’s fourth-largest renewable energy producer, has agreed to acquire a 91 per cent stake in Singapore-based distributed solar power operator Sunseap.

This S$1.1 billion (US$815 million) deal will enable the Madrid-based firm to have a wider global reach and diversify its growth sources.

EDP Renewables also stated it plans to invest S$10 billion (US$7.14 billion) by 2030 and create a clean energy hub for the APAC region in Singapore. These investments align with EDPR’s strategy for the Asia Pacific, which accounts for 55 per cent of global capacity additions this decade, with solar representing 65 per cent of the growth.

As per the agreement, Sunseap’s founders will be part of the EDPR team to lead the business. The two firms also will embark on renewable energy projects, specifically solar and wind projects, across the Asia Pacific region. There will also be opportunities for co-operation in energy storage and green hydrogen.

EDP Renewables now has access to markets with growth in renewables of over 120 GW/year, representing approximately 75 per cent of the expected global growth (2020-2030).

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The transaction will allow EDPR to establish a headquarters for the Asia-Pacific region through Sunseap, with a sizeable portfolio including close to 10 GW of renewable projects at different stages of development and an experienced team of more than 600 employees spread across nine markets.

In Singapore, the push to make renewable energy more accessible to homes and businesses has gained momentum with the unveiling of the Singapore Green Plan 2030 — a nationwide movement committed to a zero-carbon future.

Miguel Stilwell d’Andrade, CEO of EDPR, said: “Sunseap, together with EDPR’s complementary expertise, is now better equipped to drive the energy transition and mitigate climate change for the entire APAC region, fostering sustainability as a key engine for growth and green jobs and contributing to Singapore’s ecosystem of clean energy.”

Pedro Vasconcelos, COO (APAC) EDPR, said: “The Asia Pacific region is a strategic market for us towards EDPR’s global positioning, with both high demand and growth potential in the renewable energy sector. Sunseap will undoubtedly become a key growth lever for EDP, whose presence in the region will, in turn, drive local economic development.”

Frank Phuan, Co-Founder of Sunseap, said: “With EDPR’s financial muscle and expertise in renewables, Sunseap will be able to accelerate growth plans and revolutionise the energy landscape in the region, as well as nurture the next generation of talents in the industry.”

Sunseap Group is a solar energy system developer, owner, and operator in Singapore, with a pipeline of close to 10 GWac of solar energy projects across Asia. Its solar energy systems can be found on more than 3,000 buildings in Singapore, including public housing estates and commercial and industrial buildings.

Sunseap also operates in various territories across the Asia Pacific, including Vietnam, Cambodia, China, Taiwan, Japan, Thailand and Malaysia.

In 2017, Sunseap had raised US$4.8 million funding in the Series C round led by ISOTeam Limited, a Catalist-listed building maintenance and estate upgrading industry player.

EDP Renewables is a leading renewable energy firm with a presence in 26 international markets across Europe, Latin America, North America, and Asia. EDP Renewables is owned by EDP, a global energy company.

Demand for renewable energy in Asia Pacific continues to surge due to a significant increase in new projects in China, India, and Australia. The region’s renewable investments could double to US$1.3 trillion by 2030, according to global energy research and consultancy group Wood Mackenzie.

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