Ravi Chandran
DBS Bank provides SGD40 million loan facility to Sembcorp Industries for Singapore’s first single large-scale floating solar photovoltaic system
- Project is one of the world’s largest, inland floating solar photovoltaic systems to date
- DBS is the sole financier for the project
DBS Bank has provided a SGD40 million loan facility to Sembcorp Industries (Sembcorp) to build a 60 megawatt-peak (MWp) floating solar photovoltaic (PV) system on Tengeh Reservoir in Tuas. The bank is the sole financier for the project.
Scheduled to be completed in 2021, the project will be Singapore’s first single large-scale floating solar PV system as well as one of the world’s largest, inland floating solar PV systems. Awarded by PUB in February, the project will cover an area of around 45 football fields and generate enough energy to power about 16,000 four-room HDB flats for a year, offsetting about 32 kilotonnes of carbon emissions annually – equivalent to taking approximately 7,000 cars off the roads.
Loan facility by DBS will allow for the development of large-scale renewable energy project
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Koh Chiap Khiong, Head of Singapore, Southeast Asia and China (Energy), Sembcorp Industries, said, “This floating solar PV system for PUB is a landmark project that demonstrates Sembcorp’s commitment and expertise in developing large-scale renewable energy projects to contribute to Singapore’s transition to a low-carbon economy. We are pleased to have DBS Bank as the sole financing partner for this project as we build an advanced and sustainable platform to deliver long-term value for PUB and Singapore.”
Loan facility extended because enabling renewable energy is at the core of DBS’ agenda
Lim Wee Seng, Head of Energy, Chemicals and Infrastructure, DBS Bank, said, “Enabling renewable energy financing is at the core of DBS’ agenda and is one of the key tenets of our sustainability strategy. We are heartened to support Sembcorp Industries in this landmark transaction which demonstrates Singapore’s transition towards a low-carbon economy. It builds on our recent financial advisory roles in Taiwan’s largest floating solar project and also Taiwan’s largest ground-mounted solar project – and that’s where DBS seeks to differentiate itself in renewables financing – capturing financial advisory opportunities so we shape and influence early. Despite Covid-19, we closed the two solar financial advisory mandates in Taiwan and garnered four new advisory mandates across solar, wind and geothermal assets in Indonesia, Taiwan and Vietnam this year.”
Loan facility allows Sembcorp to be one of the largest renewable energy players in Singapore
With this project, Sembcorp will be one of the largest renewable energy players in Singapore with approximately 240MWp of solar capacity in the country. The project also underscores Singapore’s continued efforts to work towards achieving its solar target of at least 2 gigawatt-peak (GWp) by 2030.
Loan facility extension is only one of DBS’ commitment in developing Asia’s renewables landscape
Since 2018, DBS has completed 29 renewable projects amounting to around SGD3.6 billion across Asia. The bank also has strong expertise in advising and arranging for financing across a broad spectrum of renewable energy projects in Singapore and the region, in areas such as floating solar and rooftops, onshore and offshore wind, hydro, and geothermal.
“Renewable energy has been scaling up rapidly across the region over the last decade, giving rise to the need for more financing to fund its development, especially in developing countries, to meet climate and sustainable development goals. As a purpose-driven bank and as part of our commitment to develop Asia’s renewables landscape, we have dedicated SGD10 billion to finance renewable and clean energy development across the region by 2024, with an expected double-digit growth annually,” said Lim.
Walking the talk, DBS is also the first Asian bank and Singapore company to join the global renewable energy initiative, RE100, and has committed to utilising 100% renewable energy across all its markets, with an interim target of 100% in Singapore by 2030. To date, DBS has been making steady progress with about 14% of the bank’s total electricity consumption across its six core markets derived from renewable sources.
DBS’ participation in financing renewable energy spans a wide spectrum of technologies across our key markets.
Solar in Taiwan
DBS acted as the joint financial advisor for the NTD 7.2 billion project finance facility to develop the Changhua 1 & 2 180 MW floating solar power plant in Taiwan.
Solar in Taiwan
DBS financed Vena Energy’s 70 MW Taiwan project, a landmark deal as the largest ground-mounted solar project in the market.
Wind in Australia
In Australia, we were MLA for the 200 MW Silverton Wind Farm, which can produce approximately 780,000 MWh of renewable energy annually. The renewable energy produced from the wind farm’s 58 turbines will reduce CO2 emissions by 655,000 tonnes annually. We were also MLA for the 453 MW Coopers Gap Wind Farm. The renewable energy produced would reduce CO2 emissions by approximately 1,180,000 tonnes annually, which is equivalent to taking more than 340,000 cars off the road.
Waste-to-Energy in China
In China, we were sole financier for the refinancing of a waste-to-energy project (with 2,050 tonnes per day processing capacity and 36 MW power generation capacity) in Wuhu, Anhui province. The project is ultimately owned by SGX-listed China Jinjiang Environment Holding Company, one of the largest waste-to-energy companies in China.
Solar in China
We extended RMB 1 billion in bilateral financing to CPI Leasing. CPI Leasing is involved in renewable energy (close to three-quarters of its leasing exposure). CPI Leasing is part of the State Power Investment Corporation group, which owns one of the largest solar independent power producer portfolios in the world.
Wind in Taiwan
DBS is one of the seven international banks participating in project financing for Taiwan’s first offshore wind farm – Formosa 1. The project is split into two phases – two 4 MW offshore wind turbines were constructed in Phase I and have been operational since 2017; and completion of Phase II will increase Formosa 1’s total capacity to 128 MW, through the construction of twenty 6 MW offshore turbines in 2019.
Building Retrofit Energy Efficiency Financing Scheme
DBS participates in the pilot Building Retrofit Energy Efficiency Financing Scheme, which is introduced by the Building and Construction Authority (BCA), to help companies offset the high upfront costs associated with energy efficiency improvement works.
