Sembcorp inks 25-year solar power deal - Asian Power
Published December 16, 2025
Sembcorp Enters Long-Term Solar Power Agreement
Sembcorp Industries has announced a significant development in its renewable energy portfolio by signing a 25-year solar power purchase agreement (PPA) with Singapore’s national water agency, PUB (Public Utilities Board). This agreement is a strategic move aimed at enhancing the sustainability of Singapore's water supply and aligns with the nation’s goals for a greener future.
The PPA will enable Sembcorp to supply solar energy to PUB's water treatment plants, significantly reducing the carbon footprint associated with water supply operations. The solar power generated through this agreement is expected to meet about 30% of PUB's total energy needs, thereby contributing to the agency's commitment to sustainability and reducing greenhouse gas emissions.
Under the terms of the agreement, Sembcorp will install solar photovoltaic (PV) systems across various PUB facilities, including water treatment plants and reservoirs. The total capacity of these solar installations is projected to reach 30 megawatts peak (MWp). This initiative is part of Sembcorp's broader strategy to expand its renewable energy footprint and support Singapore's transition to a low-carbon economy.
Details of the Solar Power Project
The project will see the deployment of solar panels on the rooftops and available land at PUB’s facilities. It is anticipated that these solar installations will generate approximately 40,000 megawatt-hours (MWh) of clean energy annually. This output is equivalent to the energy consumption of about 10,000 households in Singapore for a year.
In addition to generating renewable energy, the project is designed to enhance PUB's operational efficiency. By utilizing solar power, PUB aims to lower its reliance on fossil fuels, which will contribute to the overall reduction of carbon emissions in the region.
"This partnership with Sembcorp is a significant step forward in our efforts to integrate renewable energy into our operations," said a spokesperson from PUB. "By harnessing solar energy, we are not only ensuring a more sustainable water supply but also setting an example for other agencies and organizations in Singapore."
Broader Implications for Renewable Energy in Singapore
The agreement is aligned with Singapore’s national objectives to increase the share of renewable energy in its overall energy mix. The country has set an ambitious target to produce at least 2 gigawatt-peak (GWp) of solar energy by 2030. This goal is part of Singapore's commitment to the Paris Agreement and its efforts to combat climate change.
As part of its renewable energy strategy, Singapore is also exploring various avenues to enhance energy efficiency and sustainability. The government has been actively promoting solar energy through initiatives such as the SolarNova program, which encourages the installation of solar panels on public sector buildings.
Sembcorp's partnership with PUB is a testament to the growing collaboration between public and private sectors in advancing renewable energy projects. The company has been at the forefront of renewable energy development in Asia, with a diverse portfolio that includes solar, wind, and energy storage solutions.
Future Prospects for Sembcorp
Looking ahead, Sembcorp is committed to further expanding its renewable energy capacity both in Singapore and internationally. The company has outlined plans to increase its renewable energy portfolio to 10 GW by 2025, focusing on solar and wind projects across Asia and other markets.
Sembcorp's investment in renewable energy not only aligns with global trends towards sustainability but also positions the company as a leader in the transition to a low-carbon economy. The firm has been actively engaging in various renewable energy projects, including large-scale solar farms and wind power installations, to diversify its energy offerings.
With the signing of this long-term solar power deal, Sembcorp is poised to play a pivotal role in supporting Singapore's green energy ambitions while also securing a stable revenue stream from its renewable energy operations.
Conclusion
The 25-year solar power purchase agreement between Sembcorp and PUB marks a significant milestone in Singapore's renewable energy journey. It reflects the growing importance of sustainable practices in the public sector and highlights the potential for solar energy to contribute to the country's energy needs.
This partnership not only aims to provide a reliable source of clean energy but also sets a precedent for future collaborations in the renewable energy sector. As Singapore continues to push towards its renewable energy targets, initiatives like this will be crucial in achieving a sustainable and resilient energy future.
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