The Energy Market Authority (EMA) has awarded conditional licences to five companies for Indonesia-based projects to import a total of two gigawatts (GW) of low-carbon electricity to Singapore. Additionally, two new projects have received conditional approvals to import 1.4 GW of low-carbon electricity from Indonesia. These developments were announced by the EMA in a press release dated 5 September 2024.
Background
The five companies awarded conditional licences are Pacific Medco Solar Energy Pte Ltd, Adaro Solar International Pte Ltd, EDP Renewables APAC, Vanda RE Pte Ltd, and Keppel Energy Pte Ltd. These companies received their approvals in September 2023 and are currently conducting marine surveys and feasibility studies, with the goal of achieving commercial operations by 2028. Conditional licences are granted to projects deemed technically and commercially viable and at an advanced developmental stage. The two additional projects, managed by Singa Renewables Pte Ltd and Shell Eastern Trading (Pte.) Ltd, have been granted conditional approvals to facilitate obtaining necessary regulatory permissions.
Conditional licences and approvals
The conditional licences and approvals were awarded during the Indonesia International Sustainability Forum in Jakarta. These seven projects are the result of multiple Memoranda of Understanding (MOU) between Indonesia and Singapore, signed in January 2022, March 2023, and September 2023. Both nations have committed to facilitating cross-border trading projects, interconnections, and investments in renewable energy manufacturing industries.
Imported energy
In 2021, Gan Kim Yong, now Deputy PM and Minister for Trade & Industry, announced Singapore’s plans to import up to four GW of low-carbon electricity by 2035. This initiative is part of Singapore’s broader efforts to decarbonise its power sector, which currently accounts for about 40 per cent of the nation’s carbon emissions. Since the announcement, Singapore has received over 20 proposals from various source countries. To date, EMA has issued conditional approvals to nine projects, with five advancing to conditional licences. Given the progress, EMA now aims to import around six GW of low-carbon electricity by 2035, an increase from the initial target of four GW.
“EMA will continue to engage companies with credible and commercially viable proposals that can contribute to Singapore’s 2050 net zero ambitions,” the authority stated, adding that they will continue to explore other decarbonisation pathways for the power sector.
Future implications
These developments mark significant progress in Singapore’s journey towards a sustainable energy future. The collaboration between Indonesia and Singapore not only strengthens bilateral ties but also sets a precedent for regional cooperation in renewable energy. As Singapore moves closer to its 2050 net zero ambitions, the successful implementation of these projects could pave the way for further advancements in the renewable energy sector, potentially influencing energy policies and investments across Southeast Asia.
