Sembcorp unit signs power purchase agreement for Tengeh Reservoir solar farm project

UTILITIES group Sembcorp Industries, which in February won national water agency PUB's award to design, build, own and run a floating solar farm on Tengeh Reservoir, on Monday inked a 25-year power purchase agreement for the project.

This agreement between PUB and a wholly owned Sembcorp unit, Sembcorp Floating Solar Singapore, is not expected to have a material impact on Sembcorp's earnings and net asset value for the year to Dec 31.

The 60 megawatt-peak (MWp) system, set to be fully operational by 2021, will meet the day-to-day energy needs of PUB's five local waterworks and make all of Singapore's waterworks renewable-powered, said a joint statement.

Said Sembcorp group president and chief executive Neil McGregor: "As we continue to reshape our portfolio towards renewables, we are excited to apply our proven capabilities and innovations in this field on this landmark project."

Sembcorp shares added S$0.02, or 1.25 per cent, to S$1.62 on a cum-dividend basis on Monday, before the announcement.