Sembcorp Industries announces that its wholly-owned subsidiary, Sembcorp Power Pte Ltd, has signed two long-term power purchase agreements (PPAs) with subsidiaries under Equinix, Inc. for its data center portfolio in Singapore.
Under the PPAs, Sembcorp Power will supply a maximum capacity of 75MWp from its renewable energy portfolio and 30MW from its power generation portfolio to Equinix for up to 18 years. This is Equinix’s first renewable energy PPA in Singapore, and supply will be sourced from Sembcorp’s solar assets. Sembcorp is currently the largest solar energy provider with a portfolio of 727MWp in Singapore.
As a renewables player in Asia, Sembcorp offers customers green solutions that support their drive towards decarbonization, while addressing critical concerns of energy security and stability through long-term PPAs. The PPA with Equinix increases Sembcorp’s long-term contracted capacity for its gas-fired power generation portfolio in Singapore from 74% to 77%. These Equinix PPAs collectively add to Sembcorp’s existing long-term PPA contracts with customers, ensuring a strong and stable stream
of operating cash flow for the Group. The PPAs will be accretive to Sembcorp’s earnings in the financial year ending December 31, 2024.
Last year, Sembcorp Solar Singapore, won a tender from JTC to solarise interim vacant land and rooftops across five buildings on Jurong Island. The firm said that the contracted capacity for this project amounts to 117MWp (80MW). This will make it the largest project by capacity awarded by a public sector agency in Singapore.
With this, the firm will be responsible for the establishment of the 285-megawatt-hour Sembcorp Energy Storage System and the anticipated launch of a 600 MW hydrogen-ready power plant by 2026. It is expected that such developments will help boost Singapore’s grid resilience and aid in the power sector’s decarbonisation efforts.
