Singapore adds 1.4 GW green power from Indonesia, raises import target to 6 GW by 2035
The city-state’s decision to boost import target for renewable energy is led by strong interest from ‘credible parties’
[JAKARTA] Singapore is giving the green light to two new projects to import 1.4 gigawatts (GW) of renewable energy from Indonesia, while raising its overall import target to 6 GW by 2035 – up from 4 GW – as it ramps up efforts to meet energy needs and cut emissions.
The Energy Market Authority (EMA) has also granted its first conditional licences for five Indonesian projects to import 2 GW of low-carbon electricity. These followed “substantive progress” since the five companies received the conditional approvals a year ago.
These developments were announced during the Indonesia International Sustainability Forum in Jakarta on Thursday (Sep 5). Singapore’s Senior Minister Teo Chee Hean, along with Minister for Manpower and Second Minister for Trade and Industry Tan See Leng, also delivered remarks at the forum.
Low-carbon electricity imports are part of Singapore’s overall efforts to decarbonise the power sector, which currently accounts for about 40 per cent of the nation’s carbon emissions.
In a statement, EMA announced that due to “strong interest from credible parties in electricity import projects” and the need to ensure sufficient supply for Singapore’s future energy needs, it is raising its low-carbon power import target to 6 GW, up from the 4 GW set three years ago.
The approvals and licences granted on Thursday to the seven projects build on multiple memoranda of understanding between Indonesia and Singapore in the area of energy cooperation that were signed between 2022 and 2023.
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Indonesia’s Coordinating Minister for Investment and Maritime Affairs, Luhut Pandjaitan, highlighted that the total investment value of the seven projects amounts to as much as US$20 billion.
The authority said the agreements strengthen both countries’ commitment to cross-border energy trading, interconnections and investments in renewable industries such as solar photovoltaics and battery storage in Indonesia.
The two new projects include a 1 GW project led by Singa Renewable – a joint venture between TotalEnergies and RGE, while the second one with an import capacity of 0.4 GW will be developed by Shell Eastern Trading in collaboration with Vena Energy.
Rachmat Kaimuddin, Indonesia’s deputy coordinating minister for maritime affairs and investments in infrastructure and transportation, stated that the two new projects are expected to begin exporting power to Singapore by 2030. The power will come from solar panel installations in the Riau Islands and will be transmitted via new sub-sea cables which are currently under study.
Speaking at the forum, SM Teo said: “We need stronger transmission systems to underpin our regional energy transition and to build climate resilience. If we want a truly interconnected regional grid in Asean, we must work together to develop sub-sea cables and this will allow electricity to be traded along multiple routes and in multiple directions.”
In a separate statement, William Goh, global head of renewable energy at RGE, said that both RGE and TotalEnergies are committed to providing a win-win solution for Indonesia and Singapore.
The five companies that were awarded conditional licences received the conditional go-ahead last September, and had since undertaken marine surveys, feasibility studies, and met requirements from both Indonesia and Singapore. They will aim for commercial operations by 2028.
EMA states that conditional licences are granted to electricity import projects deemed technically and commercially viable, and at an advanced development stage. Once obligations are met, an electricity importer licence may be issued to begin construction and operations.
Singapore has received more than 20 proposals including from Asian and European energy giants, as well as Australia’s Sun Cable, vying for its coveted import licence for clean energy.
Following the latest development, the Republic has granted the green light in various forms, and subject to conditions, for the import of up to some 5.6 GW of low-carbon electricity from its neighbours.
These involve plans for 3.4 GW of electricity – mostly solar – from Indonesia; 1 GW of solar, hydropower and potentially wind from Cambodia; and 1.2 GW of clean electricity from Vietnam, to be largely powered by offshore wind energy.
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