An Econo-Environmental Analysis of the Tengeh Reservoir Floating Photovoltaic Farm

Abstract

In 2021, Singapore marked a significant milestone with the establishment of a 45-hectare floating photovoltaic (FPV) testbed in Tengeh Reservoir, aligning with the global shift towards renewable energy adoption to mitigate carbon emissions. As floating photovoltaic farms gain prominence in large-scale projects, this study aims to compare their efficiency against land-based photovoltaic (LPV) farms. Key parameters, including their albedo, heat-loss coefficient and energy capacity, were analysed to assess their performance. To evaluate the economic viability of FPVs, the study employed the present worth approach, calculating and comparing crucial indicators such as its net present value, internal rate of return, payback period, benefit-cost ratio, profitability index, unit cost of generation and weighted average cost of capital. Furthermore, the environmental sustainability of FPVs was assessed by analysing solar irradiance levels in Singapore using PVGIS-ERA5 data and quantifying CO2 mitigation and emission levels. The findings reveal that FPVs present a lucrative investment opportunity with substantial net CO2 reductions, demonstrating the benefits for developers and the environment. Although FPVs are less technologically mature than their land-based counterparts, they offer promising potential that is likely to only improve through continued research and innovation.

Key Words: Solar Energy; Floating Photovoltaics; Economic Performance; Energy Efficiency; Present Worth Approach; Renewable Energy