The estimated total contract value of the power purchase agreements is $2.07 million. The value is computed based on the fixed tariff and an estimated average annual generation output of 1,890 MWh. The duration of the power purchase agreements range between 17 to 25 years. This is to coincide with the remaining lease term for each site. Upon the expiry of each agreement, Vicom or Setsco has the option of requiring CDG Engie Solar to transfer ownership of the plant to Vicom or Setsco at no additional cost.
Vicom has entered into several solar power purchase agreements with ComfortDelGro (CDG) Engie Solar Pte Ltd. The agreements were in respect to Vicom’s five inspection centres including Kaki Bukit, Sin Ming and Changi North, as well as between Vicom’s wholly-owned subsidiary, Setsco Services, and CDG Engie Solar for Setsco’s premises at Bukit Batok.
Under each of the power purchase agreements, CDG Engie Solar will install, construct, operate and maintain a solar photovoltaic generating plant at each site. CDG Engie Solar is also required to supply electricity generated from the plant to Vicom or Setsco at a fixed tariff. There is a guaranteed minimum annual output for each site.
