Sembcorp Green Infra Private Limited, part of Sembcorp Industries, has been selected for a significant renewable energy initiative, receiving a letter of award for a 150 megawatt (MW) wind-solar hybrid power project. This project, which connects to the Inter State Transmission System, comes from the Solar Energy Corporation of India Ltd. (SECI) and marks a substantial addition to the company’s growing portfolio in India.
The wind-solar hybrid project is part of a broader 600 MW bidding process initiated by SECI, emphasizing the increasing demand for hybrid renewable energy solutions in the country. Funding for this venture will be a blend of internal resources and debt, reflecting Sembcorp’s commitment to leveraging diverse financial strategies for sustainable growth.
Under the terms of a 25-year power purchase agreement (PPA) with SECI, energy generated from the new facility will provide a stable revenue stream for Sembcorp. The company aims to begin commercial operations within two years of signing the PPA, enhancing its operational footprint in India’s renewable energy sector.
With this development, Sembcorp’s total renewable capacity in India reaches 4.9 gigawatts (GW), contributing to an impressive global renewable portfolio of 14.6 GW, which includes a forthcoming acquisition of 49 MW.
Sembcorp’s leadership has indicated that while this project is a major step forward, it is not anticipated to have a material effect on the company’s earnings per share or net tangible assets for the financial year ending December 31, 2024. This reflects a strategic approach to expanding renewable energy capacity while maintaining financial stability.
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