Singapore-based energy major Sembcorp Industries has further deepened its commitment to India’s clean energy transition with the completion of its acquisition of ReNew Sun Bright, an Indian solar power company that owns and operates a large-scale solar project in Rajasthan. The transaction, valued at S$246 million, marks another strategic step in Sembcorp’s aggressive expansion across high-growth renewable energy markets.
The acquisition was executed through Sembcorp Green Infra, the company’s wholly owned renewable energy subsidiary in India, and significantly enhances Sembcorp’s operational solar capacity in the country.
300 MW Operational Solar Asset in Rajasthan
ReNew Sun Bright owns and operates a 300 MW solar power project located in Fatehgarh, Rajasthan, one of India’s most prominent solar-rich regions. The project achieved commercial operations in November 2021 and has since been delivering stable generation under a long-term 25-year power purchase agreement (PPA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL).
The long-duration PPA with a state utility provides predictable revenue visibility and underlines the project’s importance within India’s utility-scale solar landscape. Fatehgarh, located in the Thar desert region, is considered a strategic solar hub due to its high irradiation levels and availability of land for large renewable installations.
Funding Structure and Financial Impact
Sembcorp stated that the acquisition was funded through a mix of internal cash resources and external borrowings, reflecting a balanced capital deployment strategy. The deal enables Sembcorp to add a fully operational, cash-generating renewable asset to its portfolio, reducing development risk while accelerating earnings contribution.
Industry analysts view the acquisition as financially prudent, given the maturity of the asset and the long-term contracted revenues under the PPA structure.
India Portfolio Crosses 7.6 GW
With the addition of ReNew Sun Bright, Sembcorp’s total renewable energy capacity in India has crossed 7.6 GW, including both operational assets and projects under development. This places India firmly at the centre of Sembcorp’s global renewables strategy.
India has emerged as one of the fastest-growing renewable energy markets globally, driven by supportive government policies, competitive tariffs, and rising power demand. For global energy players like Sembcorp, India offers scale, long-term growth visibility, and opportunities to deploy capital across solar, wind, hybrid, and storage technologies.
Strategic Alignment with 25 GW Global Target
According to Citi analyst Luis Hilado, the ReNew Sun Bright acquisition brings Sembcorp closer to its stated ambition of achieving 25 GW of gross installed renewable energy capacity by 2028. This target was originally outlined when the transaction was announced in October 2025.
Sembcorp has been actively pursuing acquisitions, partnerships, and greenfield developments across Asia and other markets to meet this goal. The India expansion strategy reflects management’s focus on markets where renewables can be scaled rapidly while maintaining long-term returns.
Decarbonisation and Emissions Reduction Goals
Beyond capacity expansion, Sembcorp has also set ambitious climate targets. The company aims to reduce its carbon emissions intensity to 0.15 tonnes of CO₂ equivalent per megawatt hour (tCO₂e/MWh) by 2028, a significant reduction from historical levels.
While analyst forecasts suggest that emissions intensity will gradually decline, progress has been influenced by portfolio changes, including Sembcorp’s acquisition of Alinta Energy, which added fossil-based assets to its overall generation mix. Nonetheless, the continued expansion of renewable capacity—particularly in markets like India—is expected to play a critical role in driving down emissions intensity over the medium term.
India’s Role in Sembcorp’s Energy Transition
Sembcorp’s growing footprint in India reflects the country’s increasing importance in global energy transition strategies. With India targeting 500 GW of non-fossil fuel capacity by 2030, utility-scale solar projects such as ReNew Sun Bright’s Rajasthan plant are essential building blocks in meeting national climate commitments.
The company’s India portfolio spans solar, wind, and hybrid projects, supported by long-term PPAs with state utilities and central agencies. This diversified approach helps mitigate risk while supporting grid decarbonisation at scale.
Rajasthan: A Key Solar Growth Hub
Rajasthan continues to attract major investments in solar energy due to its high solar potential, availability of land, and supportive state policies. Projects in regions like Fatehgarh are increasingly being integrated into interstate power flows, supplying clean electricity to demand centres across India.
The ReNew Sun Bright project’s linkage with Maharashtra through an inter-state PPA highlights the growing sophistication of India’s power markets and transmission infrastructure.
Outlook
The acquisition of ReNew Sun Bright underscores Sembcorp’s confidence in India’s renewable energy sector and its long-term growth prospects. By prioritising operational assets with stable cash flows, the company is strengthening its financial resilience while accelerating progress toward its global renewables and decarbonisation targets.
As competition intensifies among global energy players in India, Sembcorp’s expanding scale, disciplined capital allocation, and clear sustainability roadmap position it well to remain a significant contributor to the country’s clean energy transition.
With India set to remain one of the world’s largest renewable energy investment destinations, acquisitions like this signal continued consolidation and maturity in the sector—driven by long-term vision rather than short-term capacity additions.
