Keppel Energy is one of the five companies that has received conditional approvals from the Energy Market Authority (EMA) to import low-carbon electricity from Indonesia.
The five projects can now import a total of 2 gigawatt (GW) of low-carbon electricity, making Singapore just 1GW away from meeting its target of importing 4GW by 2035.
The latest conditional approvals come after the earlier conditional approval granted to Keppel Energy in March to import 1GW of low-carbon electricity from Cambodia.
This time, the other companies that received the conditional approvals are Pacific Medco Solar, which is formed by PacificLight Renewables, Medco Power Global and Gallant Venture; Adaro Solar International, which formed by PT Adaro Clean Energy Indonesia; EDP Renewables APAC; and Vanda RE.
Vanda RE is a 75:25 joint venture between Singapore-headquartered renewable energy firm Gurin Energy and Gentari International Renewables.
Vanda RE’s infrastructure project plans to deliver 300 megawatts (MW) of non-intermittent renewable energy to the Singapore market from 2027 in order to meet EMA’s 75% load factor requirement.
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The power generation is planned on the Riau islands and underpinned by 2,000MW of solar photovoltaic installed capacity and some 4,400 megawatt-hour (MWh) of battery storage, one of the largest such planned projects in the world.
Assaad Razzouk, CEO of Gurin Energy, says: “Transitioning economies to clean energy is critical to fighting climate change. A key enabler is regional grids focused on green electrons and we are delighted to be associated with Indonesia’s and Singapore’s significant efforts in this regard. We are excited to be able to play our part, through Vanda RE’s nearly US$3 billion ($4.09 billion) planned project, in helping to mobilise foreign direct investment for Indonesia and in supporting the decarbonisation of Singapore’s energy supply to fuel Asean lifestyles with clean energy.”
Cindy Lim, CEO, Infrastructure Division of Keppel, says: “We are pleased to receive conditional approval for the cross-border import and trade of 300 MW of low-carbon electricity from Indonesia as part of the landmark Green Corridor project, which will help support the development of renewable energy manufacturing industry and capabilities in Indonesia. Keppel strongly supports regional power grids and cross-border electricity trading initiatives so as to accelerate Asean’s decarbonisation efforts and improve accessibility to sustainable energy services in the region. We would like to thank the governments of Singapore and Indonesia for their support as Keppel works with our esteemed partners to bring the project to fruition.”
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MOUs signed since January 2022
The conditional approvals stem from multiple memoranda of understanding (MOU) signed between Singapore and Indonesia in terms of energy cooperation.
An MOU on low-carbon energy and cross-border electricity interconnection was signed on Sept 8 while an MOU on renewable energy cooperation was signed on March 16. A third MOU on energy cooperation was signed on Jan 25, 2022.
These MOUs are said to “affirm both countries’ commitment to facilitate cross-border electricity trading projects and interconnections between Indonesia and Singapore, and investments in the development of renewable energy manufacturing industries, such as solar photovoltaics (PV) and battery energy storage systems (BESS) in Indonesia”.
The projects will facilitate the setting up of solar PV and BESS manufacturing plants in Indonesia. These projects aim to progressively install approximately 11 gigwatt-pek (GWp) of PV plants and approximately 21GWh of BESS, and aim to commence commercial operations from end 2027.
