Sembcorp’s renewable energy business Sembcorp Green Infra received the official letter of award for the project, following the close of the tender conducted by the Solar Energy Corporation of India (SECI), the company said in a regulatory filing.
The project is expected to be developed in phases and targeted to be fully commissioned by the first half of 2019, it said.
Upon the project’s completion, the entire power output will be sold to SECI under a 25-year longterm 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, Sembcorp said.
Sembcorp Green Infra is one of the largest renewable energy players in India and is present across seven states in the country.
This new project will expand Sembcorp’s presence in India’s power market. It already 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 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, the company said.