Indonesia’s Energy Minister, Arifin Tasrif, has confirmed plans to export clean energy to Singapore, beginning in a phased manner from 2025.
Despite initial reservations, the Indonesian government has given the nod for clean energy exports after Singapore reportedly prepared plans to import 600 MW of renewable energy-based electricity from Indonesia by 2025. This will double to 1,200 MW by 2027.
The phased exports will continue until around 2030, with an existing Memorandum of Understanding (MoU) between the countries set for a period of 3 to 5 years, but with possibilities of extension.
Deputy Minister Rachmat Kaimuddin of the Coordinating Ministry for Maritime Affairs and Investment underscored that the export plan is a collaborative effort in the ASEAN energy sector, indicating that some firms have already received the green light.
Beyond just exporting green energy, Singapore will be making investments in Indonesia’s renewable energy sector, including the manufacturing of solar panels and batteries.
Singapore, which currently produces 95% of its electricity from natural gas, is aiming to import around 30% of its needs by 2035 as part of its decarbonisation efforts. Meanwhile, Keppel Infrastructure Holdings Pte has gotten conditional regulatory approval to import 1 gigawatt of renewable capacity from Cambodia.
Both countries have also inked agreements to boost foreign investments and develop the renewable energy manufacturing industry in the Riau Islands, near Singapore.
This move signifies a deepening energy relationship between Singapore and Indonesia, potentially offering Singaporeans and international visitors a more sustainable energy supply in the coming years. Singapore’s commitment to renewable energy is evident, enhancing its global reputation as a forward-thinking nation.
Indonesia has confirmed plans to begin exporting clean energy to Singapore from 2025. The decision, part of a broader ASEAN energy sector collaboration, will see Singapore making significant investments in Indonesia’s renewable energy industry, strengthening the energy ties between the two nations.
Source: Gokepri (2023)
