SINGAPORE (June 24): Sembcorp Industries’ wholly-owned subsidiary, Sembcorp Solar Singapore has won a 50MW project from the HDB and the Singapore Economic Development Board (EDB).

As the winning bidder for the project, Sembcorp will build, own, operate and maintain grid-tied rooftop solar systems with a total capacity of 50MW across 848 HDB blocks under the West Coast and Choa Chu Kang Town Councils and 27 other government sites in Singapore. Sembcorp Solar’s winning bid was put together with one of its appointed engineering, procurement and construction (EPC) players, Kurihara Kogyo Co.

The value of bid was not revealed.

The project is part of the SolarNova programme, a whole-of-government effort spearheaded by HDB and EDB to accelerate the deployment of solar photovoltaic systems in Singapore and drive the growth of Singapore’s solar industry. Construction of the rooftop solar systems by Sembcorp will begin in 3Q 2018, and is targeted to be completed by 2Q 2020.

This deal makes Sembcorp a major solar player in Singapore. Sembcorp’s combined solar energy portfolio in Singapore now extends to 104 megawatts of capacity situated across more than 1,500 sites in the country. This is enough to power around 27,400 four-room HDB flats in Singapore per year. Sembcorp’s rooftop solar systems are located on top of public housing blocks, commercial and industrial premises as well as government sites.

Sembcorp’s move to grow solar is in line with its recently set climate change strategy as a group. In recognition that the world is rapidly transitioning to a low-carbon economy, earlier this year, Sembcorp announced ambitious targets to double its renewables portfolio to around 4,000 MW by 2022. At present, Sembcorp has over 2,500 MW of renewable energy assets, comprising wind and solar power projects across Singapore, China and India.

This latest 50-MW project will be internally funded and is not expected to have a material impact on the earnings per share and net asset per share of Sembcorp for the financial year ending Dec 31.

Shares in Sembcorp closed 3 cents higher at $2.76 on Friday.