SINGAPORE: Companies led by Singapore's Sunseap Group signed a memorandum of understanding to develop solar power systems in the neighbouring Riau islands of Indonesia to provide electricity for the city-state, Sunseap said on Monday.

The various systems will have a combined 7 gigawatt-peak (GWp) capacity, Sunseap said. It includes a previously announced 2.2 GWp floating solar farm on Batam island, part of the Riau archipelago south of Singapore. 

The project will help Singapore and Indonesia meet their green energy goals and would be one of the largest cross-border interconnected clean energy projects in Southeast Asia, Sunseap said.

"Coupled with multiple energy storage systems totalling more than 12 gigawatt hours, it aims to provide 1 gigawatt (GW) of non-intermittent low-carbon clean energy for Singapore and Indonesia," the statement said, adding that the project plans to transmit the green energy to Singapore via a proposed new subsea power cable.

The consortium aims to fulfil 20% to 25% of the target of 4 GW of low-carbon electricity imports by 2035 that Singapore announced on Monday as part of plans to diversify supply and boost energy security. 

Other signatories to the memorandum include Sumitomo Corp, Samsung C&T Corp, Oriens Asset Management, ESS Inc, Durapower Group, PT Mustika Combol Indah, and PT Agung Sedayu.

(Reporting by Roslan Khasawneh; Editing by Christopher Cushing and Christian Schmollinger) ((; Reuters Messaging: