Singapore’s Housing & Development Board tenders 40 MW solar project

Singapore’s Housing & Development Board (HDB) has called a solar leasing tender aggregating demand for the installation of solar panels across nine government organizations on 10 October 2016, as part of the SolarNova programme led by the Singapore Economic Development Board (EDB).  

This is the second combined tender led by HDB, with eight other participating government organizations – the largest number of public organizations to date riding on HDB’s bulk tender for solar panels. One key distinction from the first tender is that companies bidding in this tender will be allowed to form consortiums. At a capacity of 40 MW, this solar tender will see solar photovoltaic (PV) systems installed at 636 HDB blocks and 31 government sites, located island-wide.

In December 2015, the first tender was awarded to Sunseap Leasing Pte Ltd which offered a higher installed capacity of 76 MW.

Besides HDB, Ministry of Home Affairs (MHA) and Public Utilities Board (PUB), six new government organizations, namely Ministry of Education (MOE); National Environment Agency (NEA); Ngee Ann Polytechnic; State Courts; Ministry of Communications and Information (MCI); and Ministry of Finance (MOF), are participating in such a bulk tender for solar panels for the first time. This multi-agency solar leasing tender will close on 30 December 2016, and is estimated to be awarded in the first quarter of 2017. The installation is expected to complete in the first quarter of 2019.

In view of HDB’s experience in harnessing solar energy and its extensive solar panel installation, HDB is acting as the government’s central procurement agency for solar panels. This approach enables agencies with smaller solar PV demand to enjoy solar energy at a lower cost due to economies of scale. Upon the award of the tender, the individual government organizations will oversee the installation of the solar PV panels for their buildings.

Based on the current sustainable business model of solar leasing, HDB (and other participating organizations taking part in the bulk tender) need not fund any portion of the upfront cost for such solar projects.The user parties managing the respective HDB blocks and government buildings will enter into a power purchase agreement with the private sector developer to pay for the solar power consumed, at a preferential rate that will not go beyond the retail electricity tariff rate.

The SolarNova programme led by EDB, in partnership with HDB, aggregates demand for solar energy across public sector agencies. This results in economies of scale which lowers the cost of electricity generated from solar energy, and thus accelerates solar adoption in Singapore. The SolarNova programme will contribute strongly to Singapore’s plan to raise the adoption of solar power to 350 MWp by 2020.

Executive Director, Cleantech of EDB Mr Goh Chee Kiong said:

“Solar energy is now able to achieve multiple benefits for Singapore in terms of lower costs of electricity, environmental sustainability and energy security. The SolarNova programme will also build up critical system integration and project development capabilities which will strengthen Singapore’s position as the leading clean energy hub in the region.”

For more information about this tender, please visit our business opportunities' website.