Singtel signs 10-year PPA with Sembcorp

Singtel has announced that it has signed a 10-year Power Purchase Agreement (PPA) with energy firm Sembcorp. The deal, worth S$180 million (US$133.2m), will see energy supplied to the Singaporean telco, from October 1, 2023. Its existing electricity supply agreement (also with Sembcorp) will expire on September 30, 2023.

Speaking about the deal, the company said: "Based on the [four] tenders submitted and the evaluation factors, Sembcorp Power's 10-year fuel oil-indexed proposal was the most competitive," the company said. According to the company, the deal provides the chance to "tap on additional existing solar resources to support Singtel's green journey."

Singtel added that a 10-year proposal is "preferred" over the shorter-term contracts for which bids were submitted as it will provide a "more stable energy price" to support its current and future energy needs over a longer duration amidst ongoing energy market instability.

The PPA is reportedly subject to and conditional upon Singtel obtaining its shareholders' approval at its upcoming Annual General Meeting.

Singtel has around ten facilities across Singapore, Australia, and Hong Kong.