Dr Tan See Leng, Minister for Manpower and Second Minister for Trade and Industry, shares five ingredients Singapore needs to harness the potential of clean energy. Among them is strengthening cross-border electricity trade.
Delivering his Opening Address at the 10th edition of the Asia Clean Energy Summit (ACES), held alongside SIEW 2023, Dr Tan highlighted Singapore’s need to
harness the potential of clean energy – one of which is strengthening cross-border electricity trade.
He shared a study projecting a rise of 1.5°C above preindustrial levels by the first half of 2030s. He emphasised that "clean energy is one of the most important tools in our arsenal to combat the threat of climate change and realise the vision of a net zero world".
To align with this perspective, he presented "five ingredients" that Singapore will need to harness the potential of clean energy. Among them is strengthening cross-border electricity trade.
Making cross-border electricity trading a reality
Dr Tan acknowledged the successful integration and multi-directional electricity trading markets within the European Union, which aligns with "the vision of our ASEAN Power Grid". He shared that Singapore has been actively working to establish the necessary regulatory frameworks, infrastructure, and ecosystems to facilitate cross-border electricity trading.
He also revealed that since the commencement of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project in June last year, about 270 gigawatt-hours (GW) of electricity have been exported to Singapore. Moreover, all four countries are presently in discussions to expand trading capacities beyond 100 megawatts (MW) and to enhance the facilitation of electricity flows in all directions.
Dr Tan also said the Feasibility Study on Regional Energy Connectivity, a collaborative effort with the US, is on the verge of completing its first phase. Both countries are now planning to embark on the second phase, which will focus on governance and financing frameworks for implementing cross-border energy trading projects.
In line with cross-border collaboration, Dr Tan highlighted the Requests for Proposals the Energy Market Authority (EMA) had made in 2021 to import up to 4GW of low carbon electricity into Singapore from the region by 2035. Subsequently, EMA issued a Conditional Approval this year. This will permit the import of up to 3GW of low carbon electricity from Indonesia and Cambodia into Singapore.
Furthermore, EMA will grant a Conditional Approval to Sembcorp Utilities to import an additional 1.2GW of low carbon electricity from Vietnam to Singapore, in partnership with Petrovietnam Technical Services Corporation.
Dr Tan concluded by emphasising that cross-border collaborations and projects serve the overarching goal of developing a broader ASEAN Power Grid. He added that in light of the favourable progress, Singapore is considering the feasibility of incorporating additional electricity import projects while carefully assessing aspects such as energy security and cost implications.
The other four "ingredients" will be covered in subsequent SIEW Live Blogs.
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