Sun Electric Pte Ltd, Singapore’s first licenced solar energy retail company, has secured an investment of up to $100 million from consumer-focused private equity firm Hector Capital and energy firm Agritrade International, according to an announcement.
The investment from Agritrade and Hector Capital will help fast track the construction of Sun Electric’s current project pipeline and its regional expansion.
Sun Electric, founded by Matthew Peloso in 2013, has a pipeline of over 80 megawatts of solar rooftop projects and is working to build over 300 MW of capacity in Singapore. It plans to eventually expand its business to other markets in the Asia-Pacific region.
The investment marks Agritrade and Hector Capital’s foray into renewable energy. Edgare Kerkwijk, advisor to the investors on the transaction, said renewable energy is complimentary with the investors’ existing investments in the power generation sector.
Agritrade International is an integrated energy and shipping solutions provider headquartered in Singapore while Hector Capital invests in private companies in Southeast Asia, South Asia, and the US. The PE firm has been active in the green energy space and invested in several green energy solution providers.
The Singapore government has previously announced its plan to ramp up its solar capacity by more than seven times from the current 260 MW-peak to 2 GW installed capacity by 2030.
The planned solar capacity is enough to meet the annual power needs of around 350,000 households in Singapore, or about 4 per cent of its total electricity demand today. Solar energy currently contributes to less than one per cent to the city-state’s total energy mix.
“We are keen to participate in this growth and support Singapore’s ambition for renewable energy,” Kerkwijk said.
Investors and businesses are in support of Singapore’s plan to boost its solar power capacity. Last month, two Australian billionaires – Atlassian co-founder Mike Cannon-Brookes and mining magnate Andrew Forrest – invested millions of dollars into a mega project to supply power from northern Australia to Singapore via the world’s longest subsea high voltage cable, according to a Reuters report.