Singapore conditionally approves electricity import from Indonesia

According to a statement by the Energy Market Authority (EMA) on 8 September 2023, conditional approval has been granted based on the regulator’s initial assessment that the proposed projects are technically and commercially feasible, and that these approvals will help the companies managing the five projects to obtain “the necessary regulatory approvals and licence”.

The conditional approvals follow three agreements signed between Singapore and Indonesia on: energy cooperation; cross border electricity trading projects; and investment in renewable energy manufacturing industries such as solar photovoltaics (PV) and battery energy storage systems (BESS).

The companies can then conduct marine surveys on the proposed routes for their subsea power cables, which have been approved by the Indonesian authorities.

The details of the companies who have been granted conditional approval so far are:

For Singapore, importing electricity via regional power grids will help the country obtain enough renewable energy to reach its net zero goal by 2050, according to the EMA.

William Stroll, energy expert at Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “The grant of these six conditional approvals is another significant step towards achieving Singapore’s target of importing up to 4GW of low-carbon electricity by 2035.”

In November 2021, Singapore began seeking proposals for low-carbon electricity imports. Eight months later, it began importing 100 megawatts (MW) of hydropower from Laos via Thailand and Malaysia using existing interconnectors.

In March 2023, the EMA then granted its first conditional approval to Keppel Energy to import 1GW of electricity from Cambodia, which will require the enhancement of existing infrastructure and the building of new infrastructure including more than 1,000KM of subsea cables. 

In April, Singapore signed an agreement with Indonesia to develop renewable energy manufacturing industries in Indonesia and cross border electricity trading projects.

“While there is clear momentum behind the 2035 target, challenges lie ahead in terms of financing and constructing the necessary subsea cables and developing local supply chain capability. A further challenge is the absence of tried and tested regulatory frameworks for electricity export and import in the region. But it is encouraging to note that the EMA is already conducting electricity import trials with its various partners to assess and refine proposed frameworks,” Stroll said.