The Asian Development Bank (ADB) and the Energy Market Authority of Singapore (EMA) have renewed their memorandum of understanding (MOU) for another three years to support the development of cross-border energy projects in the Association of Southeast Asian Nations (ASEAN), including those exporting electricity to Singapore.

Under the renewed MOU, ADB and the EMA will work together to address key barriers to scaling up the development of renewable energy generation and grid interconnector projects across Southeast Asia, the duo said in a statement on Tuesday.

Possible areas of cooperation include project bankability, risk allocation, complexities around technical aspects of subsea cable infrastructure, and financing.

These efforts will help advance the vision of the ASEAN Power Grid—the regional bloc’s flagship initiative to connect national electricity networks and expand energy cooperation.

“It is a privilege to continue supporting the EMA and the Government of Singapore on one of Southeast Asia’s most consequential energy transition initiatives,” said ADB Vice-President for East and Southeast Asia, and the Pacific Scott Morris.

“By tackling some of the most complex challenges in cross-border electricity trade, our partnership with Singapore—and other stakeholders in the region—is helping shape practical, enduring solutions that will benefit Southeast Asia,” he added.

Meanwhile, EMA Assistant Chief Executive of the Energy Policy Division Chua Shun Loong, said regional power interconnections are critical enablers in strengthening energy security and supporting decarbonization in Southeast Asia.

“Through this partnership with ADB, we look forward to advancing the ASEAN Power Grid vision and accelerating the development of commercially viable cross-border electricity projects,” he added.

It is noted that ADB has pledged up to $10 billion over the next decade to the ASEAN Power Grid, including cross-border transmission, national grid projects, and renewable energy projects that will facilitate electricity trade across Southeast Asia.

More broadly, ADB is scaling up its support for regional connectivity.

This month, ADB President Masato Kanda announced a new $70 billion push to connect power grids, expand cross-border electricity trade, and improve broadband access across Asia and the Pacific.

The EMA, a statutory body under Singapore’s Ministry of Trade and Industry, has played a role to ensure a reliable and secure energy supply, promotes effective competition in the energy market, and supports the development of a dynamic and sustainable energy sector.

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