The bank is the sole financier for one of the world’s largest inland floating solar photovoltaic systems to date. DBS Bank has provided a $40 million loan facility to Sembcorp Industries to build a 60 megawatt-peak (MWp) floating solar photovoltaic (PV) system on Tengeh Reservoir in Tuas, Singapore, the bank announced on Thursday.
The reservoir, scheduled to begin full commercial operations in 2021, covers an area of around 32 hectares and will generate enough energy to power about 16,000 four-room HDB flats, offsetting about 32 kilotons of carbon emissions annually, which equivalent to taking approximately 7,000 cars off the roads.
As part of its transition to a low-carbon economy, Singapore aims to achieve a solar target of at least 2 gigawatt-peak (GWp) by 2030. With this project, Sembcorp will be one of the largest renewable energy players in Singapore with approximately 240 MWp of solar capacity in the country.
Enabling renewable energy financing is at the core of DBS’ agenda and is one of the key tenets of our sustainability strategy, Lim Wee Seng, DBS Bank’s head of Energy, Chemicals, and Infrastructure, said about the investment.
DBS seeks to differentiate itself in renewables financing – capturing financial advisory opportunities so we shape and influence early, Lim said.
The bank was previously an advisor for Taiwan’s largest floating solar project and also Taiwan’s largest ground-mounted solar project, and earlier this year garnered four new advisory mandates across solar, wind and geothermal assets in Indonesia, Taiwan and Vietnam.