Singaporean sovereign wealth fund GIC is aggressively pursuing its green energy agenda with more than US$1.4 billion fresh investments this week, targeting all geographies as it buys equity in existing producers as they advance their ambitions in wind and solar.
GIC is buying a 5% stake in Spain-based EDP Renovaveis (EDPR) for US$1 billion, supporting the producer’s plans for pan-European growth in renewables and energy transition. EDPR is planning EUR20 billion in investments to double its capacity of wind and other renewable projects by 2026.
Projects would see the roll out of more than 4GW of new wind and solar projects every year between 2023 and 2026, totalling 17GW of new installed capacity, including 5GW of onshore wind and 0.7GW of offshore wind. By 2030, it aims for 50GW of additions. Of the total EUR20bn investment, 40% will be in Europe, 40% in North America, 15% in South America and 5% in Asia Pacific.
Currently, EDPR has 25MW of offshore wind in operation in Portugal, with 30MW being developed in France and just under 6MW in other markets. Its Ocean Winds joint venture has a pipeline of nearly 17GW and is looking to as much as 70GW of new offshore wind in its target markets.
GIC’s low carbon portfolio includes stakes in Storegga, ecoATM, Greenko, Duke Energy Indiana, Arctic Green Energy, and Eneus Energy. This week, GIC revealed that it is set to boost investment in Greenko, an Indian renewable power producer. It is joining co-investors Abu Dhabi Investment Authority (ADIA) and Japan’s Orix Corp in a US$700 million raise in primary equity to fund the development of pumped storage projects which will have storage capacity of more than 25GWh; GIC is set to provide US$420 million, based on Greenko’s share structure.
Greenko Group has an installed capacity base of 7.3GW across solar, wind and hydro generation technologies, representing up to 2% of India’s total electricity needs. In January, the group launched new projects to boost green hydrogen production, including 140MW of generation capacity to produce 300 tonnes per day of green ammonia from mid-2024. The Greenko order builds on existing exclusive partnership with John Cockerill, including joint development of a 2GW electrolyser manufacturing plant.
The producer had also signed pacts with Adani Green Energy and Aurobindo Realty & Infrastructure last May to invest US$16 billion in renewable projects in the southern state of Andhra Pradesh (AP). Adani Green Energy agreed to stump up US$7.7 billion in a 3.7GW pumped hydro storage project and 10GW solar power project. The remaining US$8 billion will come from the other two partners, focused on hydro, solar and wind power. Last February, India’s quasi-sovereign wealth fund the National Investment and Infrastructure Fund’s (NIIF) Ayana Renewable Power announced it had partnered with Greenko to store 6GWh of power in hydro pump storage plants that Greenko is building at Pinnapuram in AP.
GIC was the leading sovereign investor in renewables in 2022, deploying more than US$3 billion in the sector. Its biggest transaction was the acquisition of a stake in Hong Kong-based InterContinental Energy as it ramped up solar and wind-powered green hydrogen developments in Australia. InterContinental is involved in the launch of the Western Green Energy Hub, which is set to have 50GW of capacity with a total cost of US$100 billion, making it one of the biggest in the world. It is also involved in the smaller Asian Renewable Energy Hub, which is around half the size, and is pursuing large green hydrogen projects in Oman and Saudi Arabia.
