PUB and Sembcorp Sign 25-year Power Purchase Agreement to Build Singapore’s Largest Floating Solar System


Singapore’s National Water Agency PUB, and Sembcorp Floating Solar Singapore, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), announced 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 that it has appointed Sembcorp to design, build, own and operate this project.


This project will be fully operational in 2021. It  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. 

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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 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 footprint.” 

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.”

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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,according to the releases.

PUB is a statutory board under the Ministry of the Environment and Water Resources. It is the national water agency, and manages Singapore’s water supply and water catchment.

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