Singapore commences first renewable energy electricity import

KEPPEL Electric, a subsidiary of Keppel Infrastructure Holdings and Laos state-owned electricity company Électricité Du Laos (EDL)  have inked an initial 2-year power purchase agreement, pioneering cross-border power trade of renewable energy into Singapore. 

This agreement comes as the Lao People’s Democratic Republic-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) – which imports up to 100 megawatts (MW) of renewable hydropower from Laos to Singapore via Thailand and Malaysia using existing interconnections – commenced on Thursday (Jun 23). 

Keppel Electric is also the first entity to be issued an electricity importer licence by Singapore’s Energy Market Authority (EMA). 

Keppel Electric and EDL in September last year signed an exclusive framework agreement to jointly explore opportunities in importing renewable energy into Singapore.  It was then agreed that EDL would export and Keppel would import up to 100 megawatt (MW) of renewable hydropower from Laos to Singapore via Thailand and Malaysia, using existing interconnectors under an import trial.

The LTMS-PIP serves as a pathfinder towards realising the broader Asean Power Grid (APG) vision of multilateral electricity trading beyond neighbouring countries in the region, and is a key regional initiative to enhance interconnectivity, energy security and sustainability through existing electricity interconnections.

The LTMS-PIP is one of the electricity import trials that EMA has been working on to pave the way for larger scale electricity imports of up to 4 gigawatts into Singapore by 2035. 

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Daovong Phonekeo, minister of the ministry of energy and mines of Laos, said that the country aims to be a “major supporter of renewable energy in the region”. It has exported over 6,000 MW of cross-border electricity to its neighbouring countries including Cambodia, Myanmar, Thailand and Vietnam. Laos also has more than 8,000MW of installed hydropower capacity, which is set to grow in the near future to support its domestic demand and future exports. 

Keppel and EDL are also collaborating on the establishment of renewable energy tracking, verification and assurance through Renewable Energy Certificates (RECs), as well as other long-term renewable electricity supplies that will support the Singapore Green Plan 2030 as well as help meet the growing demand for renewable energy and energy transition for the Asean region.

Ngiam Shih Chun, chief executive of EMA, said: “The LTMS-PIP is a key project to advance multilateral power trade in South-east Asia and complements existing efforts towards realising the Asean Power Grid vision.” He added that interconnected power grids can accelerate the deployment of renewable energy, promote supply diversification and strengthen grid stability for the region as a whole.

Cindy Lim, chief executive of Keppel Infrastructure, said that the unit’s participation in the inaugural cross-border renewable power trade aims to be “scalable and long-term” so that Keppel Electric will be better able to provide renewable energy to its customers in support of their journey towards net zero. “In line with Keppel’s Vision 2030 and as we seek to provide sustainable energy and urbanisation solutions for the region and beyond, we are also developing various other opportunities in renewables and clean energy to capture growing market demands,” she added.