Indonesia to Supply Green Electricity to Singapore

Singapore’s plans to import 6 GWs of low-carbon electricity to decarbonise its power sector by 2035 received a shot in the arm with Indonesia announcing to begin supply of green electricity in late 2027 or early 2028.

“Indonesia’s upcoming solar power exports to Singapore is set to become a new growth engine,” Singaporean Prime Minister Lawrence Wong, who was received by Indonesian President Prabowo Subianto, the latter’s first foreign leader guest at Jakarta’s Merdeka Palace since Prabowo’s inauguration on October 20, on Wednesday.

“We have had very good discussions on how we can work together on clean energy and sustainability. This can be a new growth engine for both our countries, especially when we realize cross-border energy exports as well as cross-border carbon capture and storage in the coming years,” Wong said in a joint press statement after his discussions with the Indonesian leader.

Prabowo described Singapore a key partner for Indonesia and Wong’s visit would be the perfect moment to strengthen strategic areas such as energy security and others, that are important to both countries.

The Indonesian President also told Wong that his country will push forward other existing low-carbon technology partnerships, including the bilateral green hydrogen project.

PLN EPI and Singaporean state-owned energy company Sembcorp recently struck a deal to construct ASEAN’s largest green hydrogen facility in Sumatra. The former is a sub-holding of PLN, the Indonesian state electricity utility firm.

Conditional Licences

It may be recalled that Singapore’s Energy Market Authority (EMA) granted “conditional licenses” for five Indonesia-based projects to supply green power totalling 2 GWs.  This conditional license puts Indonesia a step closer to exporting green electricity to Singapore.

Adaro Solar International and EDP Renewables APAC will supply 400 MWs each while Pacific Medco Solar Energy (600 MWs), Vanda RE and Keppel Energy (300 MWs each).

EMA has also issued conditional approvals to two more companies, including Singa Renewables (1 GW) and Shell Eastern Trading, which has partnered with Vena Energy to supply 400 MWs of green power, has also obtained conditional approval.

This is a permit that precedes the aforementioned conditional license. Electricity import projects that have gone through preliminary assessments are eligible for conditional approval.