Singapore's energy regulator Energy Market Authority (EMA) has granted conditional approvals to five companies to import 2GW of low-carbon electricity from Indonesia, according to the regulator on 8 September.
The five companies managing the project are Pacific Medco Solar, Adaro Solar International, EDP Renewables APAC, Vanda RE, and Keppel Energy, with the approved import capacities for these companies set at 0.6GW, 0.4GW, 0.4GW, 0.3GW and 0.3GW respectively.
Conditional approvals are granted after the EMA conducts a preliminary assessment to determine if the proposed electricity import projects are technically and commercially viable, the regulator said. This paves the way for securing the necessary regulatory approvals and licences for the projects.
The projects will begin with the construction of manufacturing plants for solar photovoltaics (PV) and battery energy storage systems (ESS) in Indonesia. The planned capacities for the PV plant and ESS are around 11GW peak (GWp)and 21GWh, respectively, with commercial operations targeted to commence by the end of 2027, according to EMA. The companies will subsequently conduct marine surveys for the proposed route of their subsea power cables, as approved by Indonesian authorities.
The conditional approvals are built upon multiple agreements between Indonesia and Singapore in the area of energy co-operation since 2022, said the EMA. Indonesian energy minister Arifin Tasrif and Singapore's second minister for trade and industry Tan See Leng on 8 September signed the most recent agreement on low-carbon energy co-operation and cross-border electricity interconnection between the two countries.
"This MoU will be valid for five years and can be extended for a further five year period", said the secretary general of Indonesia's energy ministry, Dadan Kusdiana.
The five conditional approvals granted on 8 September follows the earlier conditional approval granted to Keppel Energy in March, to import 1GW of electricity from Cambodia.
The 3GW of conditional approvals moves Singapore closer toward its goal of importing up to 4GW of low-carbon electricity by 2035, the EMA said. The EMA will continue reviewing more electricity import proposals, with the intention of granting additional conditional approvals.
"Low-carbon electricity imports through regional power grids are a key enabler in Singapore's efforts to decarbonise its energy supply, while accelerating renewable energy development in the region, facilitating economic growth and diversifying energy sources away from fossil fuels," said the EMA.
