Singapore’s Role in Boosting Renewable Energy in Southeast Asia
Singapore’s commitment to importing renewable energy is not just about meeting its own energy needs but also about setting the stage for a regional grid in Southeast Asia. This move is expected to drive investments in renewable energy projects and bolster the manufacturing sector to cater to the demand for solar panels and batteries.
The Vision for a Regional Power Grid
- Energy Market Authority (EMA) chief executive Puah Kok Keong emphasizes Singapore’s readiness to invest in accessing renewable energy from neighboring countries to establish the foundation for the ASEAN regional power grid.
- The development of such a grid will enhance connectivity among nations and encourage domestic investments in renewable energy initiatives.
The Financial Landscape
- The International Renewable Energy Agency estimates that the region requires US$290 billion to enhance renewable energy capacity, aiming to achieve 23% of energy production from renewable sources by 2025.
- As of 2022, renewable energy accounted for 15.6% of ASEAN’s energy supply.
- The potential benefits of an ASEAN power grid have gained traction, with recent initiatives gaining momentum compared to past decades.
Progress and Collaborations
- Singapore made significant strides in 2022 by importing 100MW of hydropower from Laos through Thailand and Malaysia.
- In October 2024, this collaboration expanded to include another 100MW of electricity imports from Malaysia’s grid, comprising coal and natural gas, in the project’s second phase.
- Partnerships with Indonesia, Cambodia, and Vietnam have been established to import approximately 5.6GW of clean electricity by 2035, representing nearly half of Singapore’s generation capacity in 2023.
Future Outlook and Challenges
- Singapore aims to import 6GW of low-carbon electricity from neighboring countries by 2035, accounting for around 30% of its electricity demand that year.
- With limited space for domestic renewable energy production, Singapore heavily relies on natural gas, which is projected to constitute at least 50% of its electricity mix even in 2035.
- Despite potential cost implications, such as the development and installation of subsea cables for long-distance power transmission, Singapore is willing to pay a premium for imported clean electricity.
In conclusion, Singapore’s strategic investments in imported renewable energy not only address its energy requirements but also pave the way for a sustainable energy future in Southeast Asia. By fostering collaboration and embracing innovative solutions, the region can make significant strides towards decarbonization and environmental sustainability.