Singapore, 22 October 2024 – Low-carbon electricity imports are part of Singapore’s overall efforts to decarbonise the power sector, which currently accounts for about 40% of the nation’s carbon emissions. Given the strong interest from credible parties to participate in electricity import projects, and to ensure adequate supply to meet our future energy needs, Singapore announced last month that we seek to import around 6 GW of low-carbon electricity by 2035.
2. Renewable Energy Certificates (RECs) provide proof that 1 megawatt hour (MWh) of electricity has been generated from a renewable energy (RE) source. Companies with sustainability commitments can purchase RECs to report reduced Scope 2 greenhouse gas emissions1. It is thus important to ensure the credibility of the RECs to ensure that the companies can use them to fulfil their corporate sustainability targets.
3. Within Singapore, the Singapore Standard (SS) 673: Code of Practice for Renewable Energy Certificates provides a framework to ensure the credibility of RECs issued from renewable energy projects, especially in terms of reducing the risk from double counting. However, there are currently no well-established international standards that recognise RECs associated with cross-border trading of electricity, outside of single markets like the European Union.
4. To give industry players the confidence that the RECs associated with cross-border electricity imports are properly accounted for, we have started working with countries such as Australia to study potential pathways to ensure high-integrity RECs. We are also working with like-minded partners such as Asia Clean Energy Coalition (ACEC), Climate Group’s RE100 initiative, SEMI and the I-TRACK Standard Foundation to establish a credible framework to recognise RECs associated with cross-border electricity trade. The timeline for the establishment of the REC framework is still being worked out and will be announced once finalised.
5. The development of a credible cross-border REC framework is expected to catalyse demand for cross-border electricity trading projects, which will in turn drive investment to support the long-term viability of renewable energy projects in the region.
MINISTRY OF TRADE AND INDUSTRY
22 OCTOBER 2024
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Melissa Tai
Assistant Director, Communications and Engagement Division
Ministry of Trade and Industry
Email: Melissa_Tai@mti.gov.sg