8-9-2023 (SINGAPORE) Singapore’s Energy Market Authority (EMA) has granted conditional approvals for five companies to import a total of 2 gigawatts (GW) of low-carbon electricity from Indonesia. These approvals represent a significant step toward Singapore’s goal of importing up to 4 GW of low-carbon electricity by 2035, contributing to the nation’s efforts to decarbonize its energy supply.
The five companies involved in these projects are Pacific Medco Solar, Adaro Solar International, EDP Renewables APAC, Vanda RE, and Keppel Energy, with approved import capacities ranging from 0.3 GW to 0.6 GW. These projects will result in the establishment of solar photovoltaics (PV) and battery energy storage systems (BESS) manufacturing plants in Indonesia, with plans to commence commercial operations by the end of 2027.
The conditional approvals are granted based on the preliminary assessment by EMA, which ensures the technical and commercial viability of the proposed electricity import projects. These approvals are crucial for companies seeking regulatory permits and licenses.
As the next step, the approved companies will conduct marine surveys along the proposed routes for their subsea power cables, as approved by Indonesian authorities. This critical phase will pave the way for the development and implementation of the cross-border electricity interconnection between Singapore and Indonesia.
EMA highlighted that these conditional approvals build upon the Memoranda of Understandings (MOUs) signed between Singapore and Indonesia, emphasizing low-carbon energy cooperation and cross-border electricity interconnection. Indonesia’s Minister of Energy and Mineral Resources Arifin Tasrif and Singapore’s Second Minister for Trade and Industry Tan See Leng recently signed an MOU on low-carbon energy, further strengthening bilateral energy collaboration.
These approvals follow a similar one granted in March to Keppel Energy to import 1 GW of electricity from Cambodia, aligning with Singapore’s commitment to diversify its energy sources and reduce its carbon footprint.
The import of low-carbon electricity through regional power grids is a strategic component of Singapore’s plan to accelerate renewable energy development, stimulate economic growth, and transition away from fossil fuels. EMA plans to continue reviewing electricity import proposals and may grant more conditional approvals, as the agency received over 20 proposals in 2021 and 2022.
Furthermore, projects like the Sun Cable initiative, aimed at shipping energy from a massive solar farm in Australia to Singapore via undersea cable, are expected to contribute significantly to Singapore’s low-carbon electricity import goals.
Singapore has also made strides in importing renewable energy from Laos through Thailand and Malaysia under the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, importing up to 100 megawatts (MW) of renewable hydropower using existing interconnections.
