Singapore’s sovereign wealth fund GIC will invest $1 billion for a roughly 5% stake in Europe-based clean energy firm EDP Renovaveis (EDPR), according to an announcement.
The Spain-headquartered renewable energy firm plans to use the new capital to fund the growth in renewables and energy transition. EDPR’s parent company, EDP, is keen on maintaining a share of more than 70% in EDPR and has no intention of doing any additional share placements of this size, reported The Strait Times.
EDP is among the major European operators in the energy sector and the world’s 4th largest producer of wind energy. According to the group’s updated 2023-2026 Business Plan, EDP will increase its global investment to €25 billion to boost renewables and reinforce its electricity networks while supporting its net-zero commitments.
GIC in its 2021-22 report has mentioned its commitment to enable the global transition to a net-zero economy through investments and operations. “We believe that it is critical to focus on making a positive impact in the real economy. To do this, it is more constructive to actively engage and support companies in their transition towards long-term sustainability than to mechanically divest from certain industry sectors.” stated the report.
GIC, which was the world’s most active sovereign investor in 2022, had made a strategic investment last year in Eneus Energy Limited, a green ammonia project development company based in the UK.
GIC’s green and sustainable portfolio includes Storegga, a company focused on carbon reduction and removal; ecoATM, an electronic device recycling company that reduces e-waste in an economically attractive way; Greenko, one of India’s largest renewable energy companies; and US-based Duke Energy Indiana.
It has also invested in Arctic Green Energy, which focuses on the decarbonisation of the building sector; and Solar, Berlin-based digital solar platforms, among others.