Indonesia approves route for A$30 billion Australia-Asia solar power scheme

Out-Law News | 30 Sep 2021 | 11:45 am |

The Indonesian government has approved the subsea survey permit and the proposed route for a major A$30 billion (US$22bn) Australia-Asia solar power project.

The Australia-Asia PowerLink (AAPowerLink), proposed by Singapore’s Sun Cable in 2020, is one of the world’s largest proposed renewable energy infrastructure projects. The project includes a solar photovoltaic (PV) farm anticipated to operate between 17GW and 20GW generating capacity; a 36-GW hour (GWh) to 42GWh battery energy storage system located in Darwin, Australia; and a 4,200 kilometre (km) undersea cable between Darwin and Singapore.

Eliza Danby of Pinsent Masons, the law firm behind Out-Law, said: “This is a significant step forward in the planning for this landmark project.”

Much of the energy generated by the project will be exported to Singapore. The aim is to provide power for over one million Singaporeans and ultimately there are plans to provide power to Indonesia as well.

According to a local report, the construction start date has not yet been decided, but financial close is expected to be achieved by 2023. Supply of electricity to Darwin is expected to commence in 2026. It is then anticipated the project will start to export electricity to Singapore in 2027, and start full commercial operations by 2028.

The electricity supplied to Singapore by AAPowerLink will cover up to 15% of the country’s electricity demand.

Infrastructure Australia added the scheme to its national infrastructure priority list in February.