Sembcorp Industries (Sembcorp), through its wholly-owned subsidiary Sembcorp Energy India, has signed a long term power purchase agreement (PPA) to supply 625 megawatts (MW) of power to Andhra Pradesh state power distribution companies for 12 years.
The power supply, which is generated from Semcorp Energy India’s 2.6 gigawatts (GW) supercritical power generation facility in Nellore, India, is expected to commence by 2023.
According to Sembcorp, 77% of Sembcorp Energy India’s thermal plant capacity would be underpinned by longterm and mid-term PPAs with this agreement.
“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,” says Vipul Tuli, Sembcorp Industries’ CEO of South Asia.
Sembcorp states that the signing of this agreement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the FY2022 ending December.
As at 9.20am, Sembcorp Industries shares are down 1 cent of 0.49% lower at $2.05.
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Photo: Sembcorp
