In a significant move to enhance cross-border electricity trade, Indonesia and Singapore recently signed several new memoranda of understanding (MoUs) during the leaders’ retreat in Jakarta. The agreements were concluded between President Prabowo Subianto and Prime Minister Lawrence Wong, aiming to boost energy cooperation between the two nations.
The collaboration involves Indonesia’s sovereign wealth fund, Danantara, partnering with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These partnerships are set to facilitate the development of electricity trade, marking a pivotal step in strengthening the ASEAN Power Grid. Notably, Danantara and the Singaporean government have also established a roadmap to guide future negotiations and project implementation.
A key component of this cooperation is the development of a $210 million solar power project in Central Sulawesi. This project will be a joint effort between Sembcorp, Indonesia’s INA sovereign fund, and renewable energy firm SESNA. The initiative features a solar capacity of 200 megawatts and an 80 megawatt-hour battery storage system, highlighting Indonesia’s vast renewable energy potential.
While the groundwork for electricity trade is being laid, Indonesia is continuing negotiations on electricity pricing 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 be sourced from Indonesia.
The agreements underscore the commitment of both nations to sustainable energy development, leveraging Indonesia’s renewable resources to meet Singapore’s growing energy demands. This partnership is expected to play a crucial role in the broader regional efforts toward energy integration and sustainability.