Peak Energy Signs 14-Year 1.1GWh Solar PPA for SIM

• Peak Energy’s 14-year SIM solar deal delivers 1,100 MWh annually, cutting electricity costs over 45%, with no SIM upfront spend—Peak builds, owns, and operates a 900-kWp rooftop system.

Peak Energy has signed a 14-year power purchase agreement with the Singapore Institute of Management (SIM) to supply about 1,100 MWh of solar electricity annually to SIM’s Clementi Road campus. The deal is expected to cut SIM’s electricity costs by more than 45% versus prevailing power prices, with no upfront capital investment from the institute.

Under the contract, Peak Energy will design, finance, build, own and operate an approximately 900-kWp onsite solar installation. SIM will buy the green electricity produced, while Peak Energy remains responsible for operations and maintenance throughout the PPA term. Peak Energy said it has 300 MW of operating renewable assets and 2 GW in development across Asia Pacific.

How does Peak Energy’s 14-year SIM PPA cut costs without upfront investment?

• Financing shifts from the customer to the developer: Peak Energy structures the 14-year SIM PPA so it designs, finances, builds, owns, and operates the onsite solar system, removing the need for SIM to spend upfront capital on capex-heavy infrastructure.
  
• Long-term price certainty reduces exposure to tariff volatility: By locking a multi-year supply arrangement, SIM can better manage electricity budget risk as retail or wholesale power rates fluctuate over time.
  
• Cost reductions come from producing electricity directly onsite: Generating solar power at the campus level lowers the amount of grid electricity SIM must purchase, translating into immediate savings on energy bills.
  
• Fixed/contracted PPA economics improve long-run affordability: Over the contract term, the pricing arrangement is aligned to the economics of solar generation, helping keep delivered energy costs lower than prevailing electricity prices at the outset and across the agreement horizon.
  
• Performance and generation responsibility stay with the provider: Peak Energy’s responsibility for operation and maintenance (O&M) helps protect output levels, which matters because underperformance would otherwise raise the effective cost per unit of electricity.
  
• Asset ownership and economies of scale lower unit costs: As an operator of a portfolio of renewable assets, Peak Energy can spread planning, procurement, and technical overhead across projects, reducing the overall cost of delivering solar electricity.
  
• Bankability supports lower financing costs: The 14-year term plus the “design–finance–build–own–operate” model improves project certainty for lenders, which can translate into more favorable financing terms that flow into the PPA price.
  
• Reduced lifecycle burden for the institution: SIM avoids not only upfront construction costs but also long-term expenses related to managing a solar asset’s technical upkeep, degradation monitoring, and equipment servicing during the PPA period.
  
• Green energy delivered without system integration spending: SIM does not need to fund or manage system integration for onsite generation; it purchases the resulting green electricity while Peak Energy handles the technical and operational aspects.
• A defined project scope limits risk and hidden costs: With Peak Energy responsible for delivering an approximately 900-kWp installation and maintaining it for the duration, cost overruns and operational risk are largely contained within the developer’s contract framework rather than transferred to SIM.