Sembcorp Industries’ wholly-owned subsidiary Sembcorp Energy India Limited (SEIL) has recently won a solar power project with a capacity of 400MW, for an undisclosed sum.
The win brings Sembcorp Industries’ renewables portfolio to over 3,000MW in operation and under development across Singapore, China and India.
The bid was won in a closely contested auction conducted by the Solar Energy Corporation of India (SECI) through SEIL’s renewables subsidiary, Sembcorp Green Infra.
The letter of award was received by SEIL to develop the project in Rajasthan, a state in northern India.
The project will be connected to the state’s transmission utility Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN).
The project’s entire output will be sold to SECI under a 25- year long-term power purchase agreement.
It is expected to be ready for commercial operation by mid-2022 and will be funded through a mixture of internal funds and debt.
SEIL is the first independent power producer to have completed the commissioning of 800MW of wind projects awarded from three earlier SECI bids.
The award of the solar project is not expected to have a material impact on the earnings per share (EPS) and net asset value (NAV) per share of Sembcorp Industries for the financial year ending Dec 31.
"Sembcorp is committed to providing sustainable solutions. We are pleased to secure the 400MW utility scale solar project in Rajasthan, another step towards transforming our portfolio. Sembcorp has an established track record in delivering world-class power projects,” says Wong Kim Yin, group president and CEO at Sembcorp Industries.
“This is backed by our strong capabilities in development, execution and operations. India is a key market and we will continue to provide sustainable solutions to contribute to the nation’s clean energy mission,” Wong adds.
Shares in Sembcorp closed flat at $1.77 on Jan 7.
