Sembcorp’s renewable energy business in India has won a bid for a new wind power project with close to 250 megawatts in capacity.
Sembcorp Green Infra received a letter of award for the project following the country’s first national wind power tender, conducted by Solar Energy Corp of India, an entity under India’s Ministry of New and Renewable Energy. The project will be located in Tamil Nadu and connected to India’s Central Transmission Utility. The project’s entire output will be sold to Power Trading Corporation under a 25-year long-term power purchase agreement.
Commenting on the deal, Sunil Gupta, Managing Director and CEO of Sembcorp Green Infra, said, “Sembcorp is pleased to have secured this new project, through which we can further support India’s growth with sustainable wind power. We will be locating the project in Tamil Nadu, a high-wind state, and plan to work closely with suppliers and contractors to deliver the project successfully.”
The project is expected to be developed in phases and fully commissioned in the second half of the Indian financial year ending March 31, 2019. The total project cost is estimated to be around INR 19 billion (approximately S$405 million). This is expected to be funded through a mixture of internal funds and debt.
This project strengthens Sembcorp’s presence in India’s power market, as well as its growing international renewable energy portfolio. The Sembcorp Group has over 3,800 megawatts of power capacity in operation and under development in India, comprising both thermal and renewable energy assets.
Globally, Sembcorp is actively growing its renewable energy business as part of a balanced portfolio of high-efficiency thermal, renewable as well as energy-from-waste projects. It has over 2,000 megawatts of renewable energy and energy-from-waste capacity in Singapore, China, India and the UK, including wind, solar and biomass power assets.
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.