Latest news with #SGEI
Straits Times
2 days ago
- Business
- Straits Times
New firm could accelerate S'pore clean energy import ambitions by plugging financing gap
Singapore has a target of importing 6 gigawatts of electricity by 2035 – about a third of the country's energy needs then. ST PHOTO: KELVIN CHNG SINGAPORE – Singapore recently took one step closer to satiating its hunger for clean power from the region, with the set-up of a government-linked company to oversee the development of electricity interconnectors between countries. This development is significant as it directly addresses a key pain point in importing electricity – the set-up of grid infrastructure to deliver electricity from where it is generated, such as a solar farm in Indonesia, to the households and offices here. There is currently low appetite among financial institutions to fund such infrastructure, largely due to the perceived high risks and large upfront costs. As Ms Sharon Seah, coordinator at the Asean Studies Centre and Climate Change in South-east Asia Programme at the ISEAS – Yusof Ishak Institute in Singapore, noted, a big hurdle to realising a regional grid is project financing and assessing whether projects are bankable. But the set-up of Singapore Energy Interconnections (SGEI) in April could help to increase investor confidence and attract new funding – and accelerate the Republic's drive to import more clean-generated electricity. SGEI had on May 30 told ST that its role is to invest in, develop, own and operate interconnectors to import electricity. This comes after SGEI announced its first deal to develop a new subsea electricity cable between Indonesia and Singapore. Singapore has a target of importing 6 gigawatts of electricity by 2035 – about a third of the country's energy needs then. The Republic currently relies on natural gas, a fossil fuel, for around 95 per cent of its electricity, and cutting emissions from the power sector is critical if the country is to meet its eventual goal of reaching net-zero emissions by mid-century. Ms Dinita Setyawati, a senior energy analyst at energy think-tank Ember, said the establishment of SGEI is likely to attract increased financing and leverage additional resources for the grid, such as capital, expertise and technology. Ms Seah added: 'Governments need access to financing, investors want to assess viability of long-term infrastructure projects and companies also need to be assured of such support. 'Investors will be assured of long-term viability of infrastructure projects with the involvement of SGEI, which is government-linked,' she said. The Asean power grid, first mooted in 1997, finally made headway after Singapore said in 2021 that it plans to import around 30 per cent of its electricity from low-carbon sources, such as renewable energy plants, by 2035 . The Laos-Thailand-Malaysia- Singapore electricity import pilot was launched in 2022. That same year, Singapore started importing up to 100MW of hydropower from Laos via existing interconnectors – cross-border electricity transmission lines – between the four countries. While additional financing and resources are critical enablers of Singapore's electricity import target, establishing such partnerships also require a great deal of coordination, which SGEI can help to smoothen. According to a May 15 report by Ember, cross-border grid projects require strong political coordination, harmonised regulations and long-term investment commitments. This is because development timelines can span years and investors may view such projects as high risk due to the complexity of regional governance and financing structures. SGEI could help in this area. The firm had said that it will work with partners in Asean and other stakeholders to create the required infrastructure to enable cross-border electricity trade as it focuses on building, owning and operating regional power interconnections. It also said it will work closely with regional partners to develop renewable energy projects and promote best practices, as well as facilitate technical cooperation, within the power sector. Moreover, with SGEI overseeing the development of the interconnectors, successful projects could also become proof of concept that can increase cross-border trade bilaterally or even, multilaterally. While there are already existing interconnectors within the region – such as those between Malaysia and Singapore – lessons can be drawn on how the company works with others to plan, finance and develop new interconnectors and associated assets for low-carbon electricity to be traded between countries when these projects come to fruition. Lessons from these bilateral projects could also pave the way for the development for an Asean-wide power grid. That Singapore is taking the lead on the Asean grid is unsurprising, given the lack of renewable energy resources within its borders. But for a regional grid to take off, other countries also need to be willing to participate. ' While Singapore might take the lead in off-taking clean energy through shared infrastructure, other Asean member states need to be onboard in order to establish a meaningful multilateral cooperation towards a scalable and sustainable regional power market,' said Dr Victor Nian, the founding co-chairman of independent think-tank Centre for Strategic Energy and Resources Victor Nian. For example, countries will need to establish mutually accepted codes and standards, as well as a market and governance framework for regional power trade, he said. Countries can also show strong political commitment for decarbonisation, amend national laws such as allowing foreign investments in critical infrastructure, or provide data to help assess projects' bankability, said Ms Seah. Independent research and energy intelligence firm Rystad Energy's lead renewables and power analyst for Asia Pacific Raksit Pattanapitoon said reaping benefits from a regional grid will require coordinated cooperation between countries. Supplier countries, for instance, will need to know what benefits they can reap from being linked up with another market, he said. When more countries start to signal its demand for renewable energy, like how Singapore is committing to up to 6GW of electricity imports, it could help to create a regional market and provide an impetus to develop the grid. In South-east Asia, renewable resources are unevenly distributed, so having a connected grid could allow countries to trade electricity freely to meet rising demand. Such a grid would hedge against the intermittencies of renewables. Bilateral agreements could also be stepping stones to eventually have interconnections for the region to trade low-carbon electricity to realise the vision of the Asean power grid. Progress is already being made on bilateral deals, as seen with deals between Singapore and various countries such as Indonesia, Malaysia, Cambodia and Vietnam. Connecting the national power systems of all 10 Asean countries is a tricky and mammoth task fraught with many technical obstacles. But National University of Singapore's Sustainable and Green Finance Institute's senior research fellow and energy transition lead, Dr David Broadstock, said that large grids are not uncommon, as seen in regions like Europe, where Asean can learn from. He added that recent developments point to an appetite for an Asean grid. Other than the progression of bilateral and multilateral agreements, a feasibility study of a Brunei-Indonesia-Malaysia-Philippines power integration project is also expected to be completed in 2025. These provide a glimpse of how countries can come together to make the grid a reality. Chin Hui Shan is a journalist covering the environment beat at The Straits Times. Join ST's WhatsApp Channel and get the latest news and must-reads.
Yahoo
3 days ago
- Business
- Yahoo
SGEI and Singa plan subsea electricity link from Indonesia to Singapore
Singapore Energy Interconnections (SGEI) and Singa Renewables, a joint venture between TotalEnergies and RGE, have formalised a memorandum of understanding (MoU) for the joint development of a subsea electricity interconnector between Singapore and Indonesia. The collaboration aims to enhance regional energy integration and the growth of renewable energy within the ASEAN region. The MoU was presented in the presence of government officials from Singapore and France during French President Emmanuel Macron's state visit to Singapore. TotalEnergies Renewables APAC head of business development Gregory Thomassin stated: 'We welcome SGEI to the Singa project, enhancing the resilience and viability of the interconnector and the entire project. Our combined expertise will improve energy access and security for Indonesia and Singapore, ensuring a reliable and sustainable energy future.' The agreement outlines the joint effort in planning, financing, constructing and maintaining the interconnector assets for low-carbon electricity imports to Singapore from Indonesia. The interconnector project is central to Singapore's aim of importing up to six gigawatts (GW) of low-carbon electricity by 2035. SGEI CEO Ong Teng Koon stated: 'SGEI is pleased to partner with Singa and bring together our complementary strengths to develop an interconnector between Singapore and Indonesia. 'The interconnector project will play a crucial role in enabling clean energy imports into Singapore while contributing to win-win outcomes for Indonesia and Singapore.' The initiative also bolsters the ASEAN Power Grid (APG) vision, which seeks to interlink the power systems of member states, fostering cross-border electricity trade and improving energy access across the region. RGE global head of renewable energy William Goh stated: 'In partnering with Singapore Energy Interconnections, we look forward to advancing the development of critical infrastructure to deliver reliable, low-carbon energy to Singapore and enable a greener and more connected energy future for the region.' The Energy Market Authority (EMA) of Singapore has granted Singa Renewables a conditional licence to import 1GW of renewable energy from Indonesia. This follows a co-investment agreement between the companies to develop a hybrid renewable power plant in Indonesia's Riau Province. The planned power plant will supply clean energy to Singapore and to industrial areas near the solar site in Indonesia. "SGEI and Singa plan subsea electricity link from Indonesia to Singapore" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Straits Times
7 days ago
- Business
- Straits Times
Asean grid makes headway with plans for new electricity interconnector from Indonesia to S'pore
The deal to develop the new Singapore-Indonesia interconnector for electricity imports was signed between SGEI and Singa Renewables. ST PHOTO: BRIAN TEO Asean grid makes headway with plans for new electricity interconnector from Indonesia to S'pore SINGAPORE – The Asean Power Grid, in the works for decades, made further headway with two significant developments announced in Singapore on May 30. The first is the signing of a deal that would see a new subsea electricity cable being laid between Indonesia and Singapore. This infrastructure will support Singapore's target of importing from its neighbours up to six gigawatts (GW) of low-carbon electricity by 2035, about one-third of the country's energy demand then. The second is news that the Singapore Government has appointed the Singapore Energy Interconnections (SGEI), a newly incorporated government-linked company, to specialise in developing cross-border power infrastructure. Such infrastructure is key to enabling countries in the region to trade renewable-generated electricity with one another. Both announcements were made on May 30 at an event held in conjunction with the state visit by France President Emmanuel Macron to Singapore. The deal to develop the new Singapore-Indonesia interconnector for electricity imports was signed between SGEI and Singa Renewables – a joint venture between French energy giant TotalEnergies and Indonesian conglomerate Royal Golden Eagle , which has businesses in sectors such as energy and palm oil. The signing of the memorandum of understanding was witnessed by Dr Tan See Leng, Singapore's Minister-in-charge of Energy, and Science and Technology, and France's Minister of the Economy, Finance and Industrial and Digital Sovereignty Eric Lombard. The main focus of the MOU is for both companies to explore the planning, development, financing, construction, operation and maintenance of a subsea interconnector and associated assets for low-carbon electricity imports from Indonesia into Singapore, the companies said in a statement. In response to queries from The Straits Times, SGEI said that Singa Renewables will be tapping Indonesia's abundant solar resources to generate electricity. The Energy Market Authority (EMA) has granted a conditional licence to Singa Renewables to import 1GW of low-carbon electricity from Indonesia to Singapore. The project in Rangsang Island aims to achieve commercial operations from 2029. A regional grid will allow countries to share their renewable energy resources, which are unevenly distributed throughout the region. This can boost energy security among countries in a climate-friendly way, as they can tap their neighbours during periods when the supply of renewable energy is intermittent. 'With limited renewable energy options in Singapore, electricity imports will be needed to meet our nation's net-zero emissions goal by 2050. As power generation makes up around 40 per cent of Singapore's total carbon emissions, electricity imports will play a significant role in decarbonising the power sector,' SGEI chief executive Ong Teng Koon told ST. Incorporated on April 24, SGEI said in a separate statement that it was appointed by the Singapore Government to specialise in cross-border power infrastructure that will enable electricity imports that support Singapore's low-carbon future. This will be done by investing in, developing, owning and operating interconnectors to import electricity. Grid infrastructure, which includes overland and subsea cables, is critical in ensuring that electricity can be distributed from the generation source, such as a renewable energy project, to where users are. But policymakers in the region have said that more investments in grid infrastructure are needed to facilitate cross-border electricity trade as well as make the transition to renewable energy more affordable. SGEI said it will work with partners in Asean and other stakeholders to create the required infrastructure to enable cross-border electricity trade as it focuses on building, owning and operating regional power interconnections. Besides supporting cross-border electricity trade, SGEI said it will work closely with regional partners to develop renewable energy projects, and promote best practices as well as facilitate technical cooperation within the power sector. Mr Ong added that there are other ongoing commercial discussions with project developers at various stages of maturity. Power grid integration was first mooted in 1997 to enhance cross-border electricity trade in South-east Asia to ensure energy security. But the Asean Power Grid made headway only after Singapore said in 2021 that it plans to import around 30 per cent of its electricity from low-carbon sources, such as renewable energy plants, by 2035. In 2022, the Laos-Thailand-Malaysia-Singapore electricity import pilot was launched and the region's first multilateral electricity trade took place then. Recent developments include an agreement between government-linked firms from Malaysia, Singapore and Vietnam signed on May 26 to jointly explore the export of renewable energy. Signed on the sidelines of the Asean Summit chaired by Malaysia, the pact will see the three countries collaborate on developing a new electricity link. EMA said Singa Renewables was given a conditional licence to import 1GW of solar electricity from Indonesia – an advancement from the previous 'conditional approval' awarded in September 2024 – as 'the project has made substantive progress, with marine surveys and feasibility studies completed'. 'These are key milestones in demonstrating the project's technical and commercial viability,' added EMA. 'Further progress was made recently, with the two companies signing a co-investment agreement for a solar photovoltaic plant with integrated battery energy storage.' A company has to undergo three stages before it is granted an electricity import licence from EMA. The first stage entails the firm getting 'conditional approval' from EMA, which means the regulator has found that a project's proposal is technically and commercially viable. The firm will then begin further surveys and feasibility studies. If it can demonstrate its ability to meet the requirements of both the host country and Singapore, EMA will then award it a conditional licence. At this point, the project will be in an advanced developmental stage. The third and final step is when EMA issues the importer licence. The development brings the number of electricity import projects with conditional licences from Indonesia to Singapore to six. A total of six projects from Indonesia have been granted conditional licences to export up to 3GW of greener electricity. Chin Hui Shan is a journalist covering the environment beat at The Straits Times. Join ST's WhatsApp Channel and get the latest news and must-reads.
