The company received an 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 should be fully operational by the first half of 2019.
The entire power output will be sold to SECI under a 25-year power purchase agreement. The project will be connected to India’s Central Transmission Utility and supply power to multiple states.
“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.
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.”
India pledged its commitment to curbing rising carbon levels at the 2015 United Nations Climate Change Conference. Part of this effort is a nationwide drive to double India’s wind power capacity and increase its solar power capabilities by almost five-fold by 2022.
This new project will expand Sembcorp’s presence in India’s power market. The company has over 4,000 MW of power capacity in operation and under development in the country, comprising both thermal and renewable energy assets.
Sembcorp owns 72% of Sembcorp Green Infra, while the remaining is held by IDFC Private Equity Fund III, which is managed by IDFC Alternatives.
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.