Government-linked Singapore Energy Interconnections (SGEI) and Danantara Indonesia, through its investment arm Danantara Investment Management (DIM), have signed a memorandum of understanding (MoU) for the development of cross-border electricity interconnections between Indonesia and Singapore.
The agreement will see the parties facilitate information-sharing and potential collaboration on commercial and technical issues relating to cross-border interconnector development.
Signed by DIM’s Chief Executive Officer (CEO) Pandu Patria Sjahrir and SGEI’s CEO Ong Teng Koon, the MoU supports the ASEAN Power Grid vision of enhancing energy security, resilience and sustainability through greater power system connectivity across Southeast Asia, SGEI said.
“SGEI is pleased to partner with Danantara Indonesia on cross-border energy interconnections and related infrastructure. Interconnections are the critical infrastructure that enables electricity trade between countries. Together, we will explore potential collaboration on commercial and technical issues relating to cross-border interconnector development to support regional power trade,” Teng Koon said.
Furthermore, DIM also signed two MoUs with Keppel Electric and Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries, to explore potential collaboration on the offtake of imported low-carbon electricity.
The plan for electricity interconnections between Singapore and Indonesia includes the materialization of 3.4 GW or more of projects on a commercial basis by 2035.
To support these projects, both countries will develop their respective regulatory frameworks, policies and requirements relevant to cross-border electricity trade, including the enabling conditions for investment according to agreed milestones and timelines. Both governments will also develop and adopt a Cross-Border Renewable Energy Certificate (REC) Framework, aligned with international standards.
“Several potential electricity export projects in Indonesia have made good progress. With political will from our two governments and close coordination between the Ministry of Trade and Industry (MTI) and our Indonesian counterparts, I am confident that these projects can successfully navigate the remaining hurdles and commence operations within the decade,” said Singapore’s Minister-in-charge of Energy and Science & Technology Tan See Leng .
“This will usher in greater energy security and sustainability for our peoples, generate spin-off benefits for our economies, and put us a step closer towards realising our regional vision of the ASEAN Power Grid.”