Singapore solar energy firm raises $71m
Sunseap, a Singaporean renewable energy provider, has raised S$100 million ($71.9 million) in Series D funding from a coal producer in Thailand.
Banpu, a Thailand-headquartered coal miner and energy producer, committed the capital a month after Sunseap received S$50 million from Temasek and ABC World Asia, the Asia-focused impact fund run by the state-backed investment fund.
Banpu is an existing investor, having contributed S$75 million in 2017 for a 25.7% stake. Other existing backers include Goldman Sachs, DBS, Shell, Hong Kong-based Chow Tai Fook Enterprises, renewable energy investor Enspire Apus Investments, and Singapore-based Enspire Capital.
Founded in 2011, Sunseap is a solar energy system developer with projects in Vietnam, India, Cambodia and Singapore. Clients include corporations and public housing departments while the firm also provides engineering and consultancy services.
In Singapore, it claims an electricity capacity of 168 megawatts. SP Services, a unit of the state-owned Singapore Power, owns nearly half of all solar energy assets in the country. Solar-based energy production, however, remains a fraction of the total energy mix. In the first nine months of 2019, it contributed just 1.3% of total electricity capacity.
Other PE-backed solar energy developers in Singapore include Sun Electric Energy Assets and Cleantech Solar. The Singaporean government seeks to target 2 gigawatts by the end of the decade. Funds provided by Banpu are expected to be used to support Sunseap’s projects in China, Taiwan, Japan and other parts of Southeast Asia.
“Banpu is one of Asia Pacific region's leading and most experienced integrated energy solutions provider and we see synergies between our business and theirs. We welcome its representative to our board and look forward to having Banpu's valuable perspective as we deliberate strategic plans for the Sunseap group of companies,” said Lawrence Wu, Sunseap's president.
Bangkok-listed Banpu has announced a five-year plan to refocus its business away from coal mining and energy production. It has invested in New Resources Technology, a Singaporean lithium-ion battery manufacturer, and Fomm Corporation, a Japanese developer of compact electric vehicles. It has also backed Muvmi, a ride-hailing platform for electric three-wheelers.
Following the Sunseap investment, Banpu said it plans to restructure its operations and complete the launch of Banpu Next, a clean energy-focused developer that was formerly known as Banpu Infinergy with operations mainly in Thailand.
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