The long-term contract will run for 12 years.
Sembcorp Energy India Limited (SEIL), a wholly-owned subsidiary of Sembcorp Industries, has signed a 12-year power purchase agreement to supply 625 megawatts (MW) of power to Andhra Pradesh state power distribution companies.
Under the deal, Sembcorp said the power supply is expected to start by 2023 and will be generated from SEIL’s 2.6-gigawatt supercritical power generation facility in Nellore, India.
“With this reliable, competitive power supply, we are pleased to continue our partnership with Andhra Pradesh on its journey of growth and development. At a time when Sembcorp is actively increasing its presence in renewable power, this long-term PPA will ensure optimal utilisation of our conventional generation capacity,” Vipul Tuli, CEO of South Asia at Sembcorp Industries said.
The agreement will result in 77% of the subsidiary’s thermal plant capacity underpinned by long-term and mid-term PPAs.
Sembcorp Industries noted that the agreement is not expected to have a material impact on its earnings per share and net asset value per share for the financial year ending in 2022.
