HG Metal Manufacturing Ltd, a leading steel distributor and fabricator based in Singapore, has entered into a Power Purchase Agreement (“PPA”) with LYS Energy Group, to build and operate a rooftop grid-tied solar photovoltaic (PV) system at the Group’s premises located at 28 Jalan Buroh.
The 936.84kWp solar power plant, made up of 2,059 JA Solar Modules, is estimated to achieve an average annual output of 1,031.5MWh over the next 20 years and is expected to be completed by Q3FY 2021.
Based on the current production output and business activity of the Group, the energy generated by the solar power plant is expected to account for 60% to 70% of the Group’s annual energy consumption requirements, significantly reducing the Group’s reliance on conventional electricity. With rising electricity tariffs, the switch is expected to result in cost-savings up to S$3.1M over the project duration of 20 years.
The new initiative also will enable the Group to transition towards cleaner and greener energy by shifting away from utilizing energy generated from non-renewable resources such as fossil fuels and reduce the carbon footprint of our business activities. The solar energy generated through this initiative would help the Group to reduce the equivalent of approximately 9,840 tons1 of carbon (CO2) over the next 20 years.
Under this initiative, the solar PV system will be also registered under Energy Market Authority (EMA) scheme’s Enhanced Central Intermediary Scheme (“ECIS”), to enable the export of the unconsumed excess of energy produced by the PV system into the national electricity grid.
Moreover, selling back the excess of solar-generated electricity will enable the Group to contribute to Singapore’s energy generation mix towards cleaner energy envisioned by the EMA.