SINGAPORE, November 1, 2021 – Sunseap Group, Singapore’s leading clean energy solutions provider, said today it has secured a $85.8 million loan for its SolarNova 4 project to install solar photovoltaic (PV) systems across more than 1,200 public housing blocks and 49 government sites. The project is the largest clean energy project in Singapore to date.
DBS Bank and UOB will each provide half the loan amount utilizing Sunseap’s Green Financing Framework. Both banks have extended green financing to Sunseap in the past.
Sunseap’s Green Financing Framework is aligned to the International Capital Market Association’s Green Bond Principles 2018, the Loan Market Association’s Green Loan Principles 2018, and ASEAN Green Bond Standards 2018. It is also part of Sunseap’s commitment towards the sustainability goal it has set forth.
SolarNova 4, which has a capacity of 70 MWp (potentially up to 102 MWp), is estimated to generate 96,775MWh, equivalent to powering to 20,400 public housing four-room flats and potentially offset more than 68,583 tonnes of carbon emissions per annum.
Facebook previously signed a Virtual Power Purchase Agreement (VPPA) with Sunseap, to purchase renewable energy credits (RECs) from the excess energy generated from solar panels in the SolarNova 4 project. The excess solar energy from these sites is exported to the power grid and the RECs from this exported energy are sold by Sunseap to Facebook under the private VPPA deal. The solar energy generated will support the tech company’s operations in Singapore, including Facebook’s first custom-built data centre in Asia.
Sunseap won the tender for Phase 4 of the SolarNova project in 2019 and installations commenced in 2020. The SolarNova programme is a whole-of-government effort led by Housing Development Block (HDB) and the Economic Development Board (EDB) to promote and aggregate demand for solar PV systems to achieve economies of scale and drive growth for Singapore’s solar industry. Under the SolarNova programme, HDB has committed a total solar capacity of 330MWp for 6,901 HDB blocks, and a solar target of 540MWp by 2030.
Keith Lim, Chief Financial Officer of Sunseap, said: “We are delighted to have the support of Singapore’s two leading banks once again as we continue to roll out clean energy projects in Singapore and across the region.
“Global warming remains a clear and present danger to life on the planet and Sunseap will continue to ramp up our capabilities and do our part to ensure a clean and green future for current and future generations.” Joyce Tee, Group Head of SME Banking at DBS, said, “We believe that the green sector has huge potential for Singapore’s economy, and will play a critical role in helping Singapore realise a lower carbon future. DBS is committed to catalysing growth in the green sector by helping local enterprises develop capabilities and capture opportunities arising from sustainability megatrends, such as the rapid adoption of renewable energy and decarbonisation solutions. We are pleased to partner Sunseap as it embarks on one of Singapore’s most ambitious solar projects to date.”
Eric Tham, Head of Group Commercial Banking, UOB, said, “The launch of the SolarNova 4 project is a powerful demonstration of how sustainability objectives can be incorporated into business strategies, a trend that is on the rise. We are pleased to embark on Singapore’s largest green project financing to-date with our longstanding client, Sunseap Group. UOB will continue to drive sustainability goals together with our clients and industry partners, building ecosystems and solutions to help more companies and individuals adopt sustainable practices.”
As part of efforts to tackle climate change, Singapore has set out plans under the national Singapore Green Plan 2030 to halve its 2030 peak greenhouse gas emissions by 2050, and to achieve net zero emissions “as soon as viable” in the second half of the century.