Sembcorp Industries signs long-term contract to supply power to Andhra Pradesh

Singapore 10-dollar billsSingapore 10-dollar bills

Sembcorp Industries‘ wholly owned subsidiary Sembcorp Energy India Ltd. (SEIL) has signed a long-term power purchase agreement (PPA) to supply 625 megawatts of power to Andhra Pradesh’s state power-distribution companies, the Singapore-listed infrastructure player said in a filing to SGX Tuesday.

The supply contract is for 12 years, the filing said.

The power supply is expected to begin by 2023, and will be generated by SEIL’s 2.6 gigawatt supercritical power generation facility in Nellore, India, the filing said.

The deal means 77 percent of the capacity of SEIL’s thermal plant is underpinned by long-term and mid-term PPAs, Sembcorp said.

“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 for Sembcorp Industries, said in the statement.