In a significant move to boost cross-border electricity trade, Indonesia and Singapore have inked a series of memoranda of understanding (MoUs) during the annual leaders’ retreat held in Jakarta. The agreements were signed between Indonesian President Prabowo Subianto and Singapore’s Prime Minister Lawrence Wong, underscoring a commitment to enhance energy cooperation between the two nations.
The newly signed MoUs involve Indonesia’s sovereign wealth fund, Danantara, which has entered into partnerships with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These collaborations aim to facilitate the development of electricity trade between Indonesia and Singapore. Furthermore, Danantara has agreed on a roadmap with the Singaporean government, setting the stage for future negotiations and the implementation of related projects.
Singapore has identified this initiative as a crucial step in fortifying the ASEAN Power Grid. The city-state also emphasized Indonesia’s abundant renewable energy resources, which are pivotal for this collaboration. A key component of the partnership involves Sembcorp, Indonesia’s INA sovereign fund, and renewable energy firm SESNA, which will collectively develop a $210 million solar power project in Central Sulawesi. This project is poised to deliver 200 megawatts of solar capacity alongside an 80 megawatt-hour battery storage system.
While Indonesia is still in the process of negotiating electricity pricing, the groundwork is being laid for future exports. Singapore has set an ambitious goal to import 6 gigawatts of low-carbon electricity by 2035, with approximately 3.4 gigawatts expected to be sourced from Indonesia. This collaboration is seen as a strategic effort to tap into Indonesia’s renewable energy potential and strengthen regional energy security.