Indonesia and Singapore to set up cross-border solar export framework

The two territories have set up a working group to discuss the rules and technicalities of cross border electricity sales, according to Jakarta Post. They will also set up a mechanism for deciding who will build and manage the electricity transmission network.

William Stroll, energy expert at Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “Agreeing this regulatory framework is crucial to Singapore achieving its net zero goals as it will allow the import of green energy from Indonesia. Greater inter-connectivity between southeast Asian nations has huge benefits to the region, including greater energy security and lower energy costs. We expect to see a continued push for a greater pan southeast Asia electricity network in the coming years.” 

Electricity exports can take the form of point-to-point, grid-to-grid and grid-to-grid-II mechanisms. The proposed changes are expected to revise the existing regulations due to the complexity of the electricity trade projects between the two countries, according to the Jakarta Post report.

The working group was set up after Indonesia and Singapore signed a memorandum of understanding (MOU) to strengthen bilateral energy cooperation at the end of January 2022. The MOU aims to encourage cooperation at government and industry level on energy projects, including developing new solar power and hydrogen systems, cross-border electricity interconnection and regional electricity networks, energy trading and project financing.

In October 2021, Singapore’s Energy Market Authority (EMA) announced the issue of proposals to import up to 1.2 gigawatts (GW) of electricity by 2027 and a further 2.8GW by 2035. The first RFP for electricity imports was issued by the EMA in November 2021 and the second RFP is expected to be issued in the second half of 2022.