Solar power tender awarded for Punggol Eco-Town

Solar power tender awarded for Punggol Eco-Town
Artist impression of Punggol Eco-Town

SINGAPORE - The Housing & Development Board (HDB) has awarded a tender to Sunseap, a solar system developer, to lease three mega-watt-peak (MWp) solar photovoltaic (PV) systems for another 80 HDB residential blocks at Singapore's first eco-town in Punggol.

Under the solar leasing model, Sunseap will design, finance, install, operate and maintain the solar PV systems. Installation works for the second phase is scheduled to complete by 2014.

Read the press release below for more information:

The Housing & Development Board (HDB) has awarded a tender to Sunseap, a solar system developer, to lease three mega-watt-peak (MWp) solar photovoltaic (PV) systems for another 80 HDB residential blocks in Punggol Eco-Town. This tender attracted keen competition from the industry with a total of 13 bidders, compared to the first Solar Leasing project in 2011, which only garnered 3 bids.

Under the solar leasing model, Sunseap will design, finance, install, operate and maintain the solar PV systems. Pasir Ris-Punggol Town Council will enter into a service agreement with Sunseap to pay for the solar power generated and consumed, at a preferential rate of up to 5 per cent discount off the retail electricity tariff rate. The expertise of private enterprises can be harnessed to maximise solar generation without additional cost to the Town Council.

The increased competition in the local market and cheaper prices of solar PV cells globally have resulted in a lower government capital outlay. The Government funds a small percentage of the initial capital outlay as an incentive to kick start the solar leasing programme. The initial capital outlay provided to the contractors is necessary as the current payback for solar remains long (about 20 years).

It helps to bridge the grid parity gap, so that the Town Councils need not pay higher electricity tariff rates compared to current retail tariff. For this tender, the system cost for a total of 3 MWp is $8.84 mil and the system cost payable by HDB is about $645,000.

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