April 2025
Published: 03 Apr 2025
Author: Precedence Research
Sembcorp Industries signed a major deal for a renewable energy purchase agreement (REPA) for 25 years with Malkoha Pte Ltd, a subsidiary of Meta Platforms Inc., earlier this week. This agreement is to be executed through Sembcorp's fully owned subsidiary Sembcorp Solar Singapore Pte Ltd. This partnership marks a major milestone towards augmenting clean energy solutions in Singapore. Under the REPA, it shall develop, own, and operate an approximate 150 megawatt-peak (MWp) floating solar photovoltaic (PV) installation on Kranji Reservoir in Singapore. The whole project is targeted to supplement Meta's other regional operations, which include its data center activities in Singapore. This is yet another important chapter in Sembcorp's commitment to further developing sustainable energy infrastructure.
A floating solar PV system is expected to generate significant amounts of clean energy and will be built on the Kranji Reservoir. Innovative deployment such as this, using solar technology, falls within Singapore's overarching resource strategy to maximize renewable generation notwithstanding its limited land space. Sembcorp has full control of the solar facility development, ownership, and operation under the REPA. The current project intends to demonstrate the growth in the renewable energy portfolio of the company and further establish it as a major player in the green energy transition by Singapore.
It is expected that the construction of the floating solar facility will commence within the first half of 2027, subject to the conditions stipulated in the REPA, and approvals from the pertinent authorities. The project complexities and the requirements for careful planning in successfully executing the wind farm are illustrated in such an extended timeline.
The contract executed between Sembcorp and Malkoha, a subsidiary of Meta Platforms, Inc., exemplifies the growing trend of major technology companies even signing contracts with renewable energy sources. Its use of clean energy from the floating solar farm would allow Meta to be more sustainable in its operations in Singapore, especially for its data centers that consume huge amounts of energy. The parent company of Facebook, Instagram, and WhatsApp, Meta Platforms, Inc., has been undertaking several projects towards realizing its pursuit of net-zero carbon emissions for its worldwide work operations. The partnership with Sembcorp is one of the forward steps taken by the company to continue its efforts toward minimizing its carbon footprint and promoting renewable energy.
Floating photovoltaic systems are gaining worldwide acceptance since they make 100 percent effective use of water bodies while not occupying land space, which is often precious. Such an innovative approach, bringing many environmental benefits, includes the reduction of water evaporation from reservoirs and minimum disturbance to ecosystem habitats in comparison to traditional solar farms on land. Furthermore, the clean energy produced from the solar farm at Kranji Reservoir will provide significant avenues towards meeting Singapore's renewable energy targets. The Project, by harnessing renewable energy sources, will also help mitigate greenhouse gases through the lessening of the dependency on fossil fuels, thus also assisting in countering the global climate change scenario.
Solar power generated by the Kranji Reservoir solar farm in Singapore will contribute towards meeting renewable energy targets, reducing dependence on fossil fuels, and abating greenhouse gas emissions. The 25-year REPA agreement with Singaporean company Malkoha aims to bolster the global fight against climate change. The agreement will, from 2027, further enhance Sembcorp’s badge of honor as an innovative and environmentally conscious corporation. The project will chiefly bring savings in energy costs and sustainability credentials into Sembcorp’s growth agenda.
April 2025
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April 2025