SINGAPORE – Sembcorp Industries’ wholly owned renewable energy arm, Sembcorp Green Infra, has secured a build-own-operate contract for a solar energy storage hybrid project from Indian state-owned power company SJVN. The project, announced on May 29, will supply solar power for four hours daily using a 300 megawatt-hour (MWh) battery energy storage system (Bess) to meet peak electricity demand. It is contingent on the signing of a 25-year power purchase agreement (PPA) with SJVN.
Commercial operations are expected to commence within 24 months of the PPA signing. The project has a contracted capacity of 150 megawatts (MW) and is part of SJVN’s larger 1.2 gigawatt (GW) initiative for Inter State Transmission system-connected solar projects, which includes 600MW/2.4GWh of Bess capacity. Sembcorp will fund the project through a combination of internal resources and debt.
According to the company, the project is not anticipated to have a material impact on its earnings per share or net tangible assets per share for the financial year ending December 2025. This marks Sembcorp’s second solar energy storage hybrid initiative in India and brings the group’s total renewable energy capacity in the country to 6.3GW. Globally, its renewables portfolio now stands at 17.7GW, including projects pending completion.
This new award follows the group’s first solar and Bess hybrid project in India, a 150MW photovoltaic facility with a 300MWh Bess awarded in December 2024 by the Solar Energy Corporation of India. That project also involved a 25-year build-own-operate contract to provide four hours of peak power daily. Sembcorp shares closed up 0.75 per cent at $6.69 on the Singapore Exchange on May 29.