SINGAPORE Trends and Developments Contributed by: Priyank Srivastava, Shelton M. Vaughan, Ramiro Rodriguez and Colette Tan, Duane Morris & Selvam LLP
Conclusion The rise of renewable energy, carbon markets, and AI-enabled infrastructure is creating new opportunities for energy and infrastructure M&A, while geopolitical risks and sanctions underscore the importance of risk management. If Singapore can continue to maintain a competitive approach to sustainability and digi- talisation, supported by a stable and forward-looking regulatory environment, it is poised to remain a lead- ing centre for energy and infrastructure transactions across Asia-Pacific.
with the renewable energy produced, most often in the form of RECs. In some cases, this is bundled with a financial hedge for the sale of the renewable energy produced to the Singapore grid. The financial hedge helps the property owner manage its risks and pro- vides pricing stability to the solar developer. Attracting Global Players with a Regional Footprint Singapore’s stable regulatory environment, strate- gic location and connectivity make it an attractive base for global energy companies seeking to expand in Asia-Pacific. Multinational corporations such as TotalEnergies, ENGIE and BP have set up regional headquarters, trading desks, and innovation centres in Singapore to capitalise on the growing demand for energy and sustainability solutions across the region. Singapore has hence become a popular location for regional M&A decisions to be structured, financed or executed out of, and in line with this a significant por- tion of the deals that we advise on involve parties from different jurisdictions. We expect this to concentrate capital and expertise in Singapore, lead to higher deal velocity, and raise asset valuations for companies with a strong presence in Singapore as opposed to less popular jurisdictions in the energy and infrastructure sector.
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