Through Sunseap Energy China (Shanghai), the fast-growing Singapore-based solar energy company has signed an agreement with its two Chinese partners to set up an energy investment fund called the Guohe Starkle Energy Fund. Guohe Capital will facilitate fund raising while Starkle Energy and Sunseap will advise on the projects to be invested as well as be involved in managing, operating and maintaining photovoltaic systems.
The funds raised from the partners and other investors will be invested primarily in solar power projects throughout China. Investors in the Fund will enjoy steady returns while contributing to the fight against climate change in the world’s largest energy market.
Sunseap said the Fund is timely as China is in the midst of an energy transformation that will see it adopt renewable energy at a frenetic pace. In early 2017, the Chinese government announced that it would invest US$360 billion in renewable energy by 2020 and scrap plans to build more coal-powered plants.
The Guohe Starkle Energy Fund aims to bridge the gaps in the supply and demand of renewable energy and will target heavy users of energy such as those in transport, information and communications, biomedicine, state-owned industrial parks and manufacturers in heavy industries.
The latest investment will position Sunseap to leverage on its partners’ network and local knowledge at a time when it seeks to diversify into new areas such as distributed storage energy systems, virtual power plants, carbon asset management, e-vehicle services and distributed renewable power stations.
Mr Frank Phuan, CEO and Executive Director at Sunseap Group, said: “We are pleased to be partnering Guohe Capital and Starkle Energy, two esteemed companies that can help us to expand our footprint into China, one of the most exciting energy markets in the world today. “This new venture presents a unique opportunity for us to navigate China’s vast domestic market while building our capabilities in new technologies that will grow our business in both scope and scale.”
Guohe Capital, established in 2009 with Shanghai International Group, a state-owned financial institution in Shanghai, is one of China’s first private equity fund managers. It manages an investment fund which exceeded RMB 14 billion in assets at the end of 2017. Its clients range from leading enterprises in various industries, listed companies in China and abroad, large financial institutions and government asset funds.
Starkle Energy is a renewable energy developer which was established in 2011 and based in Shanghai. It has a strong focus on developing photovoltaic projects. It has developed and owned 32MW of photovoltaic projects under a previous fund structure which they have participated.