SP Group is constructing South-east Asia's first large-scale underground substation, a move that will free up three hectares of prime land space as it seeks to optimise space in Singapore.

The land freed up will make way for a 34-storey development. Located in Labrador, the 230 kV substation will serve the electricity needs of nearby towns such as Alexandra, Clementi, Keppel, Pasir Panjang and the Science Park district, when it is in service.

The Urban Redevelopment Authority (URA) told The Business Times that the substation will be integrated with the 34-storey commercial building, as one part of the larger Greater Southern Waterfront. The Greater Southern Waterfront is an aspect of the URA Master Plan launched in 2019.

Additionally, the group announced on Tuesday that it has awarded the building contract of the substation to main contractor Hyundai Engineering & Construction Co.

Said SP Group's chief executive officer Stanley Huang: "In our business of enabling a low-carbon, smart-energy future, we are building sustainable and resilient infrastructure... This is in line with Singapore's urban renewal plans and our own SDG (United Nations' Sustainable Development Goal) of ensuring access to reliable, sustainable and modern energy for all, and tapping innovation to build sustainable infrastructure."

Noting that building an underground substation requires more resources and specialised engineering capabilities, the electricity and gas distribution company highlighted that in the long term, underground substations have a lower risk of being exposed and damaged. This would ensure asset and network security, SP Group added.

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Alice Tan, head of consultancy at Knight Frank Singapore, said that freeing up land space in Labrador for a property development project is a “positive engineering feat”. Given the site’s proximity to Keppel golf club, which is zoned for residential use, as well as to Mapletree Business City, there is potential for future property development which can support real-estate uses such as commercial use, said Ms Tan. 

“Demand for commercial use in the area can be well supported as the Labrador-Mapletree Business City locale further develops into a business centre and lifestyle precinct, coupled with its proximity to the waterfront and Labrador Nature Reserve,” she added. 

 SP Group said that the substation and the commercial building are scheduled for completion in 2024.