PUB and Sembcorp Sign 25-Year PPA to Build Largest Floating Solar System in Singapore

Floating solar system aims to be a global showcase of operational excellence and safety

underscores PUB and Sembcorp’s commitment to support Singapore’s target
of achieving 2 gigawatt peak (GWp) of installed solar capacity by 2030

PVTIME - Singapore’s National Water Agency PUB, and Sembcorp Floating
Solar Singapore, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp),
are pleased to announce today the signing of a 25-year power purchase agreement
(PPA) to build a 60 megawatt-peak (MWp) floating solar photovoltaic (PV) system
on Tengeh Reservoir. The agreement signing followed PUB’s announcement on
February 10, 2020 that it has appointed Sembcorp to design, build, own and
operate this project.

When fully operational in 2021, this project aims to be a
global showcase of operational excellence and safety as Singapore’s largest, as
well as one of the world’s largest, inland floating solar PV systems. The solar
power generated will meet the day-to-day energy needs for operations at PUB’s
five local waterworks, including Marina Barrage. This makes Singapore one of
the few countries in the world to achieve 100% green waterworks when the
project is completed.

Under the agreement, Sembcorp Floating Solar Singapore will
deploy over 146,000 solar panels at Tengeh Reservoir in Tuas, covering an area
of around 45 football fields. At 60 MWp, the floating solar PV system will
generate enough energy to power about 16,000 four-room HDB flats for a year and
offset about 32 kilotonnes of carbon emissions annually – equivalent to taking
approximately 7,000 cars off the roads.

Utilising highly efficient PV modules that maximise solar
energy yield, the panels would be installed on corrosion-resistant floats that
are certified to be of food-grade quality. Prior to deployment, extensive
studies have been conducted to ensure that the PV modules pose minimal impact
to the environment and water quality.

 Ng Joo Hee, Chief Executive, PUB said, “With this
floating solar power plant, which we believe to be one of the largest single
systems in the world, PUB takes a big step towards enduring energy
sustainability in water treatment. Solar energy is plentiful, clean and green,
and is key to reducing PUB’s and also Singapore’s carbon

Neil McGregor, Group President & CEO, Sembcorp
Industries, said, “Sembcorp is privileged to partner PUB in their ongoing
sustainability journey, greening their waterworks as well as producing more
solar power in Singapore’s total electricity mix. 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. When complete, the
Tengeh floating solar installation will not only represent a world-class
engineering feat but also help to support Singapore’s solar target of 2
gigawatt-peak (GWp) by 2030.”

The signing of this agreement is not expected to have a
material impact on the earnings per share and net asset value per share of
Sembcorp, for the financial year ending December 31, 2020.