Singapore bears ‘no financial impact’ from Sun Cable collapse: MTI

SINGAPORE is not affected by the collapse of solar energy company Sun Cable’s plan to send electricity from Australia to the Republic, Minister for Trade and Industry Gan Kim Yong said in a written reply to Parliamentary questions on Monday (Feb 6).

Sun Cable’s proposal was among more than 20 received by the Energy Market Authority (EMA) in its ongoing requests for proposals for electricity imports. As part of the tender process, the EMA has been clarifying Singapore’s technical requirements with the renewable energy firm but “has not made any commitment, financial or otherwise”, said Gan.

“Singapore therefore bears no financial impact from the recent actions taken by Sun Cable to enter into voluntary administration,” he said.

The country remains on track to import up to 4 GW of low-carbon electricity by 2035, with discussions with companies in progress, he added. “We also welcome Sun Cable to resume discussions when it is ready to do so.”

Gan was replying to questions from Members of Parliament on the implications of the collapse of the Sun Cable project, both financially, as well as for the city-state’s renewable energy targets.

Sun Cable said on Jan 12 that it will enter voluntary administration, after its backers failed to reach an agreement on the terms for providing further funds for the project’s next and largest stage. A court in Sydney agreed to a sales process put forward by the project’s administrators on Jan 25.

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Singapore currently relies on natural gas for almost all its power generation needs, said Gan, but is working to decarbonise by accelerating the deployment of solar energy, working with regional partners, and exploring new alternative sources such as hydrogen and geothermal energy.

“Strong international collaboration is necessary to facilitate commercial electricity trading projects and the development of regional power grids,” he said. Singapore is working with the US Department of Energy on the Feasibility Study on Regional Energy Connectivity in South-east Asia, to enhance energy connectivity in the region for greater energy security and grid resilience.

Singapore has also signed Memoranda of Understanding with Brunei, Cambodia, Indonesia, Lao PDR and Vietnam in the past year, to strengthen its energy collaborations, as well as develop regional power grids and cross-border electricity trading.

Gan highlighted a cross-border purchase agreement between YTL PowerSeraya and TNB Genco on Jan 30, to import 100 MW of electricity from Malaysia as part of a two-year trial. “We look forward to the implementation of this project, and further small-scale import projects which serve as important pathfinders for scaling up electricity trading,” he said.