Sembcorp unit bags solar power project in India

Sembcorp Industries' India energy arm Sembcorp Energy India Limited (Seil) has clinched a 400MW solar power project through its renewables subsidiary, Sembcorp Green Infra.

The energy and utilities group announced yesterday that Seil won the bid in a "closely contested" auction conducted by the Solar Energy Corporation of India (Seci).

Seil will develop the project in the northern Indian region of Rajasthan, which will be connected to the state's transmission utility.

The project's entire output will be sold to Seci under a 25-year long-term power purchase agreement. The project is expected to be ready for commercial operation by the middle of next year and will be funded through a mixture of internal funds and debt, said Sembcorp in its pre-market filing.

This project win brings Sembcorp's renewables portfolio to over 3,000MW in operation and under development across Singapore, China and India.

It is another step towards transforming Sembcorp's portfolio, said the company's group president and chief executive Wong Kim Yin. "India is a key market and we will continue to provide sustainable solutions to contribute to the nation's clean energy mission," he added.

Seil has completed the commissioning of 800MW of wind projects awarded from three earlier Seci bids, becoming the first independent power producer to do so, said the group.

Lim & Tan Securities remained "neutral" on the stock, given its current valuation metrics, but said it likes the group's renewed focus on the renewable sector, which is viewed to be in line with the new United States administration's goals under President-elect Joe Biden.

Sembcorp Industries closed at $1.82 yesterday, up five cents or 2.8 per cent.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on January 09, 2021, with the headline 'Sembcorp unit bags solar power project in India'. Print Edition | Subscribe