Singapore adds 1.4 GW green power from Indonesia, raises import target to 6 GW by 2035

[JAKARTA] Singapore is giving the green light for 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).

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 seven companies build on multiple memorandums of understanding between Indonesia and Singapore in the area of energy cooperation that were signed between 2022 and 2023.

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.

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.