The imported electricity is expected to harness solar power from Australia's Northern Territory and will be transmitted via new subsea cables measuring 4,300km, said the Energy Market Authority (EMA) on Tuesday (Oct 22). Contact online >>
The imported electricity is expected to harness solar power from Australia''s Northern Territory and will be transmitted via new subsea cables measuring 4,300km, said the Energy Market Authority (EMA) on Tuesday (Oct 22).
Sun Cable said its US$13.5 billion solar project in Australia, the Australia-Asia PowerLink, is set to be the "world''s largest solar farm and battery storage infrastructure".
EMA said: "The conditional approval awarded to Sun Cable recognises that the project can be technically and commercially viable based on the proposal and information submitted thus far."
Speaking at the Asia Clean Energy Summit on Tuesday, Second Minister for Trade and Industry Tan See Leng called the proposal "an ambitious project", given the scale and the distance between Australia and Singapore.
"But when completed, the project will be a meaningful complement to the ASEAN (Association of Southeast Asian Nations) Power Grid, and serve as an additional source of electricity for Singapore."
This is not the first time such a project has been mooted. Sun Cable had intended to begin construction on the undersea cables in 2024 and be fully operational by 2029, but the company fell into voluntary administration in January 2023.
The firm had fallen short of funds, it announced then. Voluntary administration refers to a process where a company''s directors appoint independent administrators to step in to find a path forward for the business, which is usually facing financial difficulties.
Trade and Industry Minister Gan Kim Yong said in February 2023 that the company''s decision to enter voluntary administration did not affect Singapore financially as it had not made any commitment to the project.
Interim CEO of Sun Cable International Mitesh Patel said: "Conditional approval is a vote of confidence from the Singapore government in Sun Cable and our role as a key partner to support the nation''s green transition."
"We firmly believe that high voltage long-distance subsea cables are critical to the global energy transition, connecting high-yield renewable energy areas like northern Australia to high-demand centres such as Singapore," he said.
"We continue to work closely with the governments of Australia, Indonesia and Singapore on the project''s development and requisite approvals of relevant jurisdictions to support the Asia-Pacific''s renewable energy goals."
Low-carbon electricity imports are part of Singapore''s strategy to decarbonise the power sector, which currently accounts for about 40 per cent of the country''s emissions.
It has granted conditional licences for 2GW of electricity imports from Indonesia, as well as conditional approvals for 1.4GW from Indonesia, 1GW from Cambodia and 1.2GW from Vietnam.
"If realised, these projects will collectively tap a diverse mix of solar energy, hydropower and wind power. They will also contribute to the realisation of the ASEAN Power Grid," said EMA.
Singapore will also import a maximum of 200MW of renewable hydropower through a cross-border initiative called the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project.
The authority said it would continue to explore all decarbonisation options for the power section, including hydrogen, solar, deep geothermal energy, nuclear energy, as well as carbon capture and storage technologies.
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