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