Sembcorp unit clinches Tengeh Reservoir solar farm project

ENERGY and utilities group Sembcorp Industries has bagged the project to build a floating solar farm on Tengeh Reservoir, with wholly-owned subsidiary Sembcorp Solar Singapore coming in as the preferred bidder, it announced on Monday.

The 25-year award to build the 60 megawatt-peak (MWp) system on Tengeh Reservoir by 2021 will take Sembcorp's solar capacity in the Republic to about 240MWp, the group added.

Sembcorp Solar beat out three other bidders - homegrown players Sunseap and Terrenus Energy, as well as Malaysia's Cypark, according to government procurement portal GeBiz.

This is its second "design, build, own and operate" project with national water agency PUB, after the Sembcorp Changi NEWater Plant, which opened in 2010.

PUB, which said in its call for proposals that it would ink a power purchase agreement for all electricity generated from the project, will use the energy to run its water treatment processes.

The Tengeh Reservoir system can produce enough electricity to meet 7 per cent of all its energy needs, PUB noted in a statement on Monday.

The agency had last year called for proposals for a large-scale floating solar panel project at Tengeh Reservoir with capacity of at least 50MWp.

Sembcorp Industries shares shed S$0.03 or 1.48 per cent to S$2.00 on Monday before the announcement.