Singapore to import 1.4 GW of solar power from Indonesia, following 2 GW deal

SINGAPORE: Singapore is set to grant conditional approval to import 1.4 gigawatts (GW) of electricity from two solar power projects in Indonesia, marking a significant step in the country’s push for a low-carbon energy supply. According to Reuters, this announcement was made by Senior Minister Teo Chee Hean during his visit to Indonesia on Thursday.

This new deal follows a previous arrangement to import 2 GW of solar power from Indonesia.

The latest agreement will help Singapore secure clean electricity from solar power and battery storage systems. Indonesian Senior Minister Luhut Pandjaitan said that this deal marks a shift for Indonesia from being a major exporter of coal and natural gas to taking its first step in transitioning from a fossil fuel exporter to a renewable energy exporter.

According to Minister Luhut, the overall projects are valued at approximately $20 billion.

Conditional approvals for the 1.4 GW of power will be awarded to the TotalEnergies-RGE and Shell-Vena consortia, according to Singapore’s Minister of Manpower and Second Minister for Trade and Infrastructure, Tan See Leng. The 2 GW import deal, approved last year, will also be upgraded to conditional licences this year, said Mr Teo at the Indonesia International Sustainability Forum in Jakarta.

These projects will be developed by a coalition of Indonesian and Singaporean firms, including Pacific Medco Solar Energy, Adaro Solar International, and Keppel Corp Ltd. Together, these companies plan to install about 11 GW of solar photovoltaic capacity and 21 GW of battery storage capacity in Indonesia, with the projects expected to come online by late 2027.

Keppel Corp has announced that the electricity generated from their projects will be transmitted via a common subsea cable system, which will be jointly developed and shared by the consortium.

However, the transmission plan for the additional 1.4 GW of power is still under development. Rachmat Kaimuddin, an Indonesian deputy coordinating minister, noted that the additional power supply is expected to be available around 2030. /TISG

Read also: Microsoft to purchase solar power from Singapore’s largest solar project

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