Sembcorp Industries said on Monday that its subsidiary has signed a 25-year power purchase agreement with Singapore's National Water Agency to build a 60 megawatt-peak (MWp) floating solar photovoltaic (PV) system on Tengeh Reservoir.

"Under the agreement Sembcorp Floating Solar Singapore will deploy over 146,000 solar panels at Tengeh Reservoir in Tuas, in western Singapore, covering an area of around 45 football fields," the company said in a statement.

The solar power generated will meet the day-to-day energy needs for operations at the water agency's five local waterworks, including Marina Barrage, the company said.

The floating solar PV system, likely to be the largest in Singapore, will generate enough energy to power about 16,000 four-room Housing & Development Board flats for a year and offset about 32 kilotonnes of carbon emissions annually, the company added.

(Reporting by Nakul Iyer in Bengaluru. Editing by Jane Merriman)