Sembcorp bags second Indian wind power project
It is targeted to be commissioned by 1H19.
Sembcorp's renewable energy business Sembcorp Green Infra was awarded a 250-megawatt project in the country’s second nationwide wind power tender. This makes Sembcorp the utility player which has won the largest combined capacity in India’s two national wind power tenders so far.
Sembcorp Green Infra Limited received the official letter of award for the project, following the close of the tender conducted by the Solar Energy Corporation of India (SECI) on behalf of the Government of India’s Ministry of New and Renewable Energy (MNRE). The project is expected to be developed in phases and targeted to be fully commissioned by the first half of 2019.
Upon the project’s completion, its entire power output will be sold to SECI under a 25-year long-term power purchase agreement. The project will be connected to India’s Central Transmission Utility and supply power to multiple states, helping them to meet their renewable energy requirement.
“We are pleased to have secured back-to-back wins in both national wind power tenders held to date. This demonstrates Sembcorp’s strong renewable energy capabilities”, said Sunil Gupta, Managing Director and CEO of Sembcorp Green Infra. “Greater transparency and offtake creditworthiness gives established long term players like Sembcorp an advantage. Combined with declining equipment prices, this has allowed us to provide clean power at lower tariffs."
Vipul Tuli, CEO & Country Head of Sembcorp India, added, “This new renewable energy project is in line with Sembcorp’s strategy to make our energy business in the country stronger and more sustainable. It also reinforces our commitment to India, and to playing a role in powering the country’s continued progress.”
This new project will expand Sembcorp’s presence in India’s power market. The company has over 4,000 megawatts of power capacity in operation and under development in the country, comprising both thermal and renewable energy assets.
In addition, the project also strengthens Sembcorp’s global renewable energy business, which it has been actively growing as part of a balanced portfolio. The company has wind, solar and biomass energy as well as energy-from-waste projects in Singapore, China, India and the UK.
The award of this project is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2017.