In a strategic move to bolster cross-border electricity exports, Indonesia and Singapore have inked several new memoranda of understanding (MoUs) during the annual leaders’ retreat in Jakarta. The agreements were formalized between Indonesia’s President Prabowo Subianto and Singapore’s Prime Minister Lawrence Wong, marking a significant step in energy cooperation between the two nations.
The collaborations involve Danantara, Indonesia’s sovereign wealth fund, partnering with key players like Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These partnerships are poised to support the development of a robust electricity trade framework between Indonesia and Singapore. Additionally, a roadmap has been agreed upon between Danantara and the Singaporean government to steer future negotiations and ensure seamless project implementation.
Singapore considers this initiative as a vital advancement towards fortifying the ASEAN Power Grid, emphasizing Indonesia’s abundant renewable energy resources. A notable aspect of this cooperation is the development of a $210 million solar power project in Central Sulawesi. This project, a joint effort by Sembcorp, Indonesia’s INA sovereign fund, and renewable energy firm SESNA, aims to establish 200 megawatts of solar capacity complemented by an 80 megawatt-hour battery storage system.
As discussions continue regarding electricity pricing, Indonesia is keen to finalize terms before exports commence. Singapore has set an ambitious target to import 6 gigawatts of low-carbon electricity by 2035, with approximately 3.4 gigawatts anticipated to originate from Indonesia. This endeavor reflects a shared commitment to sustainable energy solutions and regional energy security.