EMA of Singapore waved a green flag to five companies for the imports of 2GW of low-carbon electricity, on conditions

Singapore’s Energy Market Authority (EMA) has conditionally nodded to five corporations regarding the importation of 2GW of Indonesian low-carbon electricity.

The five companies, namely Pacific Medco Solar, Adaro Solar International, EDP Renewables APAC, Vanda RE, and Keppel Energy, have been given a thumbs up (contingent on conditions) to import varying amounts of low-carbon electricity from Indonesia. These approvals came after EMA carried out preliminary evaluations to ensure the technical and commercial feasibility of the proposed projects.

Once greenlit, these projects will initiate the construction of solar photovoltaic (PV) manufacturing plants and battery energy storage systems (ESS) in Indonesia. EMA mentioned that the targeted capacities for these plants are approximately 11GW peak and 21GWh, respectively, aiming for operational commencement by the end of 2027.

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These companies also plan to undertake marine assessments for the proposed subsea power cable routes, having received the go-ahead from the Indonesian authorities. EMA pointed out that these conditional consents are rooted in several energy cooperation agreements between Singapore and Indonesia since 2022.

The most recent pact focusing on low-carbon energy cooperation and cross-border electricity connectivity between the two nations was signed by Indonesian energy minister Arifin Tasrif and Singapore's trade and industry minister, Tan See Leng. Furthermore, Dadan Kusdiana, the secretary general of Indonesia's energy department, mentioned the agreement's five-year validity, which holds potential for an additional five-year extension.

It's worth noting that one of the approvals on 8 September came after an earlier one given to Keppel Energy in March, permitting them to source 1GW of electricity from Cambodia. These approvals, totaling 3GW, align Singapore with its aspirations to import up to 4GW of low-carbon electricity by 2035. EMA has expressed its intention to keep evaluating more import proposals and grant further conditional approvals.

EMA emphasized that regional low-carbon electricity imports play a pivotal role in Singapore's decarbonization journey, simultaneously fostering regional renewable energy growth, boosting economic development, and shifting energy dependencies away from fossil fuels.

According to Procurement Resource, the conditional approvals by the EMA signify a progressive step in Singapore's decarbonization mission, emphasizing its commitment to reduce reliance on fossil fuels. These strategic partnerships and the import of low-carbon electricity not only align with Singapore's future energy goals but also fortify regional cooperation and sustainable economic growth. The nation's focus on renewable energy is evident, and with its meticulous planning and collaboration, Singapore positions itself as a regional leader in sustainable energy practices.