EMA awards conditional licenses to import 2GW of low-carbon energy from Indonesia

The Energy Market Authority (EMA) has awarded conditional licences to five companies in charge of Indonesia-based projects to import a total of two gigawatts (GW) of low-carbon electricity to Singapore.

Additionally, two conditional approvals will be granted to two new projects to import 1.4 GW of low-carbon electricity from Indonesia to Singapore, said the EMA in a press release dated Sep. 5, 2024.

Conditional licenses and approvals

The five companies are Pacific Medco Solar Energy Pte Ltd, Adaro Solar International Pte Ltd, EDP Renewables APAC, Vanda RE Pte Ltd, and Keppel Energy Pte Ltd.

They were awarded conditional approvals in Sep. 2023 and are currently at various stages of completing marine surveys and feasibility studies, aiming to achieve commercial operations for the projects from 2028.

Conditional licences may be issued to electricity import projects that have been assessed to be technically and commercially viable. They must also be at an advanced developmental stage.

Conditional approvals seek to facilitate the companies in obtaining the necessary regulatory approvals and licences for the projects.

Two of those have been granted to Singa Renewables Pte Ltd and Shell Eastern trading (Pte.) Ltd.

Cooperation between Indonesia and Singapore

The conditional licenses and conditional approvals were awarded during the Indonesia International Sustainability Forum in Jakarta.

The seven projects were built on multiple Memoranda of Understanding (MOU) between Indonesia and Singapore in the area of energy cooperation.

They were signed in January 2022, March 2023, and September 2023.

Both countries affirmed their commitment to facilitate cross-border trading projects and interconnections, as well as investments in the development of renewable energy manufacturing industries.

Imported energy

In 2021, Gan Kim Yong (now Deputy PM and Minister for Trade & Industry) announced Singapore's plans to import up to four GW of low-carbon electricity by 2035.

Low-carbon electricity imports are part of Singapore's overall efforts to decarbonise the power sector, which currently accounts for about 40 per cent of the nation's carbon emissions.

Since Gan's announcement, Singapore has received over 20 proposals from multiple source countries.

EMA has issued conditional approvals to nine projects so far, of which five have advanced to conditional licences.

Given the progress of electricity import projects, EMA is seeking to import around six GW of low-carbon electricity by 2035, an increase from the initial target of four GW which was announced in 2021.

"EMA will continue to engage companies with credible and commercially viable proposals that can contribute to Singapore’s 2050 net zero ambitions," the authority said, adding that they will continue to study other decarbonisation pathways for the power sector.

Top photo via Matthew Henry