SEMBCORP’S first greenfield renewables project in the Middle East will begin commercial operations more than four months ahead of schedule, said the group on Monday (Dec 30).
This comes as its wholly owned subsidiary, Sembcorp Utilities, successfully completed the acceptance tests to achieve the commercial operation of the power project in Oman.
Manah II Solar Independent Power Project is Sembcorp’s first greenfield renewables development in the Middle East.
The development is expected to be accretive to the group’s earnings per share.
But it will not have a material impact on Sembcorp’s net tangible assets per share for the financial year ending Dec 31, 2024.
In March 2023, the group announced that it has clinched the contract to build, own and operate a 500 megawatt (MW) solar plant in Oman, through an 80 per cent-owned joint venture set up by Sembcorp Utilities with Jinko Power Technology.
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“With an installed peak capacity of 588 MW, the project is Sembcorp’s largest utility-scale solar farm in its global renewables portfolio,” said the group.
The project is backed by a 20-year power purchase agreement with Nama Power and Water Procurement Company.
It is expected to increase Oman’s contribution of renewable energy to 30 per cent by 2030, noted Sembcorp.
The group previously said that the solar plant in Manah, a town in northeastern Oman, will augment Sembcorp’s presence in the country’s power and water desalination sector.
It had also noted that the project will be financed through a mix of internal cash resources and external bank borrowings.
Shares of Sembcorp closed 0.7 per cent or S$0.04 higher at S$5.45 on Friday.
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