Singapore has commenced its first renewable energy import via a regional multilateral power trade agreement signed by Keppel Electric and Laos state-owned electricity enterprise Électricité Du Laos (EdL).
Keppel Electric is a subsidiary of Keppel Infrastructure, which is, in turn, a wholly-owned subsidiary of Keppel Corp.
This agreement imports up to 100 megawatts (MW) of renewable hydropower from Laos to Singapore - via Thailand and Malaysia - using existing interconnections, is also the first multilateral cross-border electricity trade involving four ASEAN countries.
In a joint release, Keppel and EdL say this serves as a “pathfinder” toward realising the broader ASEAN Power Grid (APG) vision of multilateral electricity trading beyond neighbouring countries in the region.
The APG is a key regional initiative to enhance interconnectivity, energy security and sustainability through existing electricity interconnections.
This then provides opportunities to tap on low-carbon and renewable energy sources in the region and contributes toward economic development, as well as improving energy security and stability.
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Singapore is tapping on regional power grids to access cleaner energy sources beyond its borders, and regional power grids can help accelerate the development of renewable energy projects, promote economic growth and bring greater energy security to the region.
This agreement is also one of the electricity import trials that Singapore’s Energy Market Authority (EMA) has been working on to pave the way for larger-scale electricity imports of up to 4 gigawatts (GW) into Singapore by 2035
Dr. Daovong Phonekeo, Minister of Energy and Mines of Laos says that the country targets to be a major supporter of renewable energy in the region.
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According to him, Laos has exported over 6,000MW of cross-border electricity to its neighbouring countries including Cambodia, Myanmar, Thailand and Vietnam.
The country has more than 8,000MW of installed hydropower capacity, which is set to grow in the near future to support its domestic demand and future exports.
In addition, Keppel and EdL are also collaborating on the establishment of renewable energy tracking, verification and assurance through Renewable Energy Certificates (RECs) as well as other long-term renewable electricity supply.
This is in support of the Singapore Green Plan 2030, as well as to meet the growing demand for renewable energy and energy transition for the ASEAN region.
The abovementioned development is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corp for the current financial year.
Shares of Keppel Corp closed on June 23 at $6.52, down three cents or 0.46% lower than its previous close.
