Sembcorp Industries’ subsidiary Sembcorp Solar Singapore has secured a 50MW solar project from Housing & Development Board (HDB) and the Singapore Economic Development Board (EDB).
Image: Solar Farm. Photo: Courtesy of ced dec/FreeImages.com
As the winning bidder for the project, Sembcorp will build, own, operate and maintain grid-tied rooftop solar systems with a total capacity of 50MW across 848 HDB blocks under the West Coast and Choa Chu Kang Town Councils and 27 other government sites in Singapore. Sembcorp Solar’s winning bid was put together with one of its appointed engineering, procurement and construction (EPC) players, Kurihara Kogyo.
This project is part of the SolarNova programme, a whole-of-government effort spearheaded by HDB and EDB to accelerate the deployment of solar photovoltaic systems in Singapore and drive the growth of Singapore’s solar industry. Construction of the rooftop solar systems by Sembcorp will begin in third quarter of this year, and is targeted to be completed by second quarter 2020.
This deal makes Sembcorp a major solar player in Singapore. Sembcorp’s combined solar energy portfolio in Singapore now extends to 104MW of capacity situated across more than 1,500 sites in the country.
This is enough to power around 27,400 four-room HDB flats in Singapore per year. Sembcorp’s rooftop solar systems are located on top of public housing blocks, commercial and industrial premises as well as government sites.
Sembcorp Singapore, Southeast Asia & China (Energy) head Koh Chiap Khiong said: “As a home-grown company that has built up an established renewable energy portfolio internationally, Sembcorp is committed to a sustainable future for all. We are very excited to apply our global expertise here at home, and contribute to the growing momentum towards cleaner energy in Singapore.
“With the full implementation of the open electricity market in the country later this year, we look forward to making a difference to households and businesses not only with value-for-money power packages, but also by delivering more sustainable electricity to them.”
Sembcorp’s move to grow solar is in line with its recently set Climate Change Strategy as a group. In recognition that the world is rapidly transitioning to a low-carbon economy, earlier this year, Sembcorp announced ambitious targets to double its renewables portfolio to around 4GW by 2022. At present, Sembcorp has over 2.5GW of renewable energy assets, comprising wind and solar power projects across Singapore, China and India.
This latest 50MW project will be internally funded and is not expected to have a material impact on the earnings per share and net asset per share of Sembcorp for the financial year ending 31 December, this year.
Source: Company Press Release