EDP Renewables (EDPR) has bought a substantial stake in Singaporean solar firm Sunseap.
The deal values Singapore’s leading solar energy company at S$1.1bn (€0.7bn) and will see EDPR become a major shareholder in Sunseap.
EDPR is investing at a time when Sunseap is expanding its footprint in the region, in particular with a 2.2GW project to build a floating photovoltaic farm and an energy storage system in Indonesia’s Batam island.
This is in addition to other regional interconnection projects to export renewable energy to power data centres in Singapore.
EDPR has an installed wind and solar capacity of 13 GW.
It designs, develops, manages and operates power plants that generate electricity from renewable sources and has a presence in 17 markets in Asia, Europe and America.
With this investment, EDPR will expand its renewables platform in Asia through Sunseap, complementing EDPR’s footprint in the rest of the world and enhancing the deployment of a portion of its US$22bn (€19bn) investment plan through 2025.
In addition, this tie-up will also enable knowledge transfer from EDPR to Sunseap for the Asian market, including in wind energy while generating opportunities for collaboration in areas of energy storage and green hydrogen.
Sunseap co-founder and chief executive officer Frank Phuan said: “We are delighted to welcome EDP Renewables as a major shareholder.
“Its strategic vision to expand in the renewable energy sector in Asia aligns with Sunseap’s mission to help our customers to decarbonise their work, home and play, and will position us to accelerate our business plan for the region.
“With EDP Renewables onboard, we look forward to growing our customer base, achieving greater scale and efficiency through talent access, portfolio diversification and mergers and acquisitions.”
Sunseap co-founder and president Lawrence Wu added: “EDP Renewables is one of the world’s leading renewable energy companies and its investment marks a significant milestone for Sunseap.
“There is much to do for the Sunseap group in the coming years and we are excited to find a partner who supports our mission, values and ambition.
“Their global reach in 17 large markets will also create opportunities for collaboration and partnership which is key to energy transition.”
EDP and EDPR chief executive Miguel Stilwell d’Andrade added: “We are pleased to partner Sunseap for the Asian markets, creating a truly aligned and wholesome platform that enlarges the global reach of EDPR beyond its current markets.
“The strategy and vision of Sunseap is a perfect fit to EDPR’s leading role within the ongoing energy transition.
“Moreover, it brings local knowledge and a new enriching culture to the company.”