Singapore-based Sembcorp Industries has agreed to acquire ReNew Sun Bright, the solar energy unit of ReNew Energy Global, for approximately S$246m ($190.02m). 

This acquisition aims to enhance Sembcorp's renewable energy portfolio in India. 

ReNew Sun Bright operates a 300MW solar power plant situated in the Indian state of Rajasthan. The plant began commercial operations in November 2021. 

The facility operates under a 25-year power purchase agreement (PPA) with the local electricity company. 

Upon closing of the transaction, Sembcorp's total renewable energy capacity in India will reach 6.9GW, encompassing both installed and under-development projects. 

The transaction comes at a time when India aims to increase its renewable energy capacity to 500GW by 2030, which is currently at 165GW, reported Reuters. 

Last year, Sembcorp Industries received a letter of award for a 300MW interstate transmission system wind-solar hybrid power project. 

The project was awarded to Sembcorp’s subsidiary Sembcorp Green Infra by India’s National Thermal Power Corporation (NTPC), as part of a larger 1.2GW bid.  

The award stipulates that the power generated by the project would be sold to NTPC under a 25-year PPA.

This deal comes days after India’s Union Ministry of New and Renewable Energy ordered domestic clean energy agencies to cancel and reissue solar project tenders that were hurriedly floated to bypass certain regulatory requirements. 

Most domestic developers rely on low-cost Chinese solar cells. However, India’s clean energy policy allows only locally manufactured modules and cells be used in government-backed projects.