- Singapore is seeking clean power from a major Australian solar farm and renewable sources in Malaysia to meet rising energy demands.
- The city-state aims to import up to 4.2 gigawatts of electricity from regional partners, addressing its limited local energy production and reliance on fossil fuels.
Singapore faces rising energy demands driven by data centres and limited local energy production options, so it is turning to Australia and Malaysia for clean power solutions. On August 21, 2024, Australia announced a major solar farm project to supply Singapore with up to two gigawatts (GW) of electricity via an undersea cable.
Singapore aims to peak carbon emissions by 2030 and achieve net-zero emissions by 2050, but its heavy reliance on imported oil and gas poses a challenge. Due to its geographic constraints, Singapore lacks the space for large solar farms and cannot produce wind or hydropower.
To address these issues, Singapore’s Energy Market Authority has approved plans to import 1GW from Cambodia, 2GW from Indonesia, and 1.2GW from Vietnam, using a mix of solar, wind, and hydropower. However, hydropower projects in the region face criticism for causing environmental damage, such as deforestation.
Renewable energy imports will make up at least 30 per cent of Singapore’s electricity by 2035. Yet, there are significant hurdles, including the long distances for energy transmission, potential energy losses, and the intermittent nature of renewable sources.
The proposed 4,300-kilometer undersea cable project requires approvals from multiple stakeholders, including Singapore’s energy regulators, Indonesian officials, and Australian Indigenous communities.
Singapore is already experiencing complications with other renewable energy projects, such as hydropower from Laos. Challenges include disagreements over energy transmission routes and competition for renewable resources. A large-scale, bilateral renewable energy agreement could limit Singapore’s flexibility in managing disruptions, highlighting the need for diverse renewable sources.
Experts suggest Singapore’s focus on renewable energy could inspire broader regional efforts to boost clean energy production. As Singapore seeks to secure its energy future, its actions may drive increased renewable energy ambitions across the region, leveraging its financial resources and strategic position to overcome obstacles and lead in the low-carbon energy transition.