Singapore and Indonesia are exploring potential collaboration on offtake of imported low-carbon electricity.
At the Singapore-Indonesia Leaders’ Retreat, President of the Republic of Indonesia Prabowo Subianto and Prime Minister of the Republic of Singapore Lawrence Wong have reaffirmed both countries’ commitment to strengthen and expedite cooperation in cross-border electricity trade (CBET). the Ministry of Trade and Industry Singapore and Danantara Indonesia said in a statement joint statement on Monday.
Danantara Indonesia was designated by the Government of the Republic of Indonesia to spearhead CBET between Singapore and Indonesia.
According to the statement, Danantara Indonesia, through its investment arm Danantara Investment Management (DIM), has signed two Memoranda of Understanding (MOU) with Keppel Electric and Sembcorp Utilities (a wholly-owned subsidiary of Sembcorp Industries) to explore potential collaboration on offtake of imported low-carbon electricity.
These MOUs reflect the commercial interest in and demand for imported low-carbon electricity in Singapore.
Danantara Indonesia has also signed an MOU with Singapore Energy Interconnections (SGEI) to facilitate information-sharing and potential collaboration on commercial and technical issues relating to cross-border interconnector development.
Singapore’s Minister-in-charge of Energy and Science & Technology Dr. Tan See Leng and Indonesian Minister of Investment and Downstream Industry and Danantara Indonesia Chief Executive Officer Rosan Perkasa Roeslani commended the MOUs and echoed the Leaders’ comments on CBET.
Both Ministers looked forward to the materialization of 3.4GW or more of projects by 2035 on a commercial basis.
The projects will advance energy connectivity between and decarbonization for both countries, including by catalyzing new investments and jobs in Indonesia’s clean energy sector.
To support these projects, both countries will develop their respective regulatory frameworks, policies and requirements relevant to cross-border electricity trade including the enabling conditions for investment according to agreed milestones and
timelines.
Both governments will also develop and adopt a Cross-Border Renewable Energy Certificate (REC) Framework, aligned with international standards, to support the tracking and accounting of cross-border RECs ahead of the first flow of electrons.
“Several potential electricity export projects in Indonesia have made good progress. With political will from our two governments and close coordination between the Ministry of Trade and Industry (MTI) and our Indonesian counterparts, I am confident that these projects can successfully navigate the remaining hurdles and commence operations within the decade,
“This will usher in greater energy security and sustainability for our peoples, generate spin-off benefits for our economies, and put us a step closer towards realizing our regional vision of the ASEAN Power Grid,” said Tan.
Meanwhile, Rosan said political will is the foundation, but execution is what delivers.
“Indonesia is fully committed to addressing the regulatory and infrastructural priorities on our side to ensure the project moves before the decade’s end. Importantly, this is new, additional generation capacity – distinct from our domestic supply，
”At its core, this is a catalyst for Indonesia’s domestic green industrialization – the interconnection with Singapore is one expression of a far larger strategic transformation,” he said.
By building this interconnection, he added Indonesia envisions to be the champion of the ASEAN Power Grid along with Singapore, and they are proving that regional decarbonization and high-value economic growth can, and will, happen simultaneously.
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