Sembcorp Energy India wins 400 MW solar power project

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Singapore-based Sembcorp Industries' Indian unit has won a bid for a new solar power project of 400 megawatts (MW) capacity offering a tariff of Rs 2 per unit in a closely contested auction.

Sembcorp Energy India Ltd (SEIL) has received the letter of award from Social Energy Corporation of India (SECI) to develop the project in Rajasthan, the company said in a statement here.

"The project's entire output will be sold to SECI under a 25-year long-term power purchase agreement," it said.

While the firm did not give the tariff it had bid to win the project, analysts said it had offered Rs 2 per unit.

ICICI Securities in a recent note said SECI had received bids from 14 companies for 4.35 GW against the tender of 1.07 GW.

"Winners of the round were: Aljomaih Energy & Water Company (Saudi Arabia) - 200 MW at Rs 2 per unit; Sembcorp (Singapore) - 400 MW at Rs 2 per unit and NTPC - 470 MW at Rs 2.01 per unit," it had said.

Sembcorp, which recently completed the commissioning of 800 MW of wind projects from three SECI bids, is aiming at completing the solar project in Rajasthan by mid-2022.

The project will be funded through a mixture of internal funds and debt, the statement said without giving details.

SEIL through its renewables subsidiary Sembcorp Green Infra had won this bid in a closely contested auction conducted by SECI.

Vipul Tuli, CEO of South Asia, Sembcorp Industries said: "As a long-term player committed to India's energy transition, we are pleased to secure the 400 MW utility-scale solar project in Rajasthan."

Sembcorp, he said, has established a track record of delivering world-class power projects within timelines.

"We are confident of delivering this project thanks to strong support from central and state government agencies and our business partners," he said.

"India is a key market for Sembcorp, where we will continue to contribute to the nation’s clean energy mission. With this win, we have moved into our next phase of growth."

Globally, Sembcorp is actively growing its renewable energy business as part of its focus on sustainable growth.

With this win, Sembcorp Industries now had a renewables portfolio of over 3,000MW in operation and under development across Singapore, China and India, it said.

India is targeting an installed capacity of 100 gigawatts of solar plants by 2022 as part of its policy to push for a greater share of renewable energy sources.

SECI has been designated as a nodal agency for developing and facilitating the establishment of the grid-connected solar power capacity in India for this. It initiated a tariff-based competitive bid process for the procurement of the power.

SECI is the intermediary to facilitate the promotion of solar power projects and to purchase and re-sell the electricity to the distribution licensees to enable them to fulfill the renewable purchase obligation.

The buying utility will be responsible for all transmission charges and losses and any other charges as applicable under the respective regulations beyond the delivery point.

SEIL has a balanced portfolio of thermal and renewable energy assets totalling 4.8 GW capacity in operation and under construction.