Singapore's Energy Market Authority (EMA) has given conditional approval for the import of two gigawatts of low-carbon electricity from a solar power project in Indonesia, a cabinet minister said on Friday.
Singapore and Indonesia will soon sign a memorandum of understanding for the imports, Tan See Leng, Singapore's Minister of Trade and Industry told a forum on sustainability in Jakarta.
"Singapore's target is to import four gigawatts of low carbon electricity by 2035. The fact that half of this would come from Indonesia is testament to our comprehensive and our longstanding partnership," said Tan.
The two gigawatt power supply will be sourced from projects developed by five Indonesian and Singaporean companies that, collectively, have proposed to install about 11 gigawatt peak of solar photovoltaic capacity and 21 gigawatt battery storage capacity in Indonesia, he added.
In a statement, Singapore's Keppel said the EMA has given it conditional approval for the long-term import and sale of 300 megawatts of low-carbon electricity from Indonesia to Singapore, starting from the end of 2027.
Keppel said this electricity will be transmitted via a common subsea transmission cable system to be jointly developed and shared by a consortium comprising Keppel, EDP Renewables APAC and Vanda RE.
Indonesia's deputy minister for maritime and investment affairs Rachmat Kaimuddin said he hoped such cooperation with Singapore would boost Indonesia's solar panel industry.
Indonesia has pushed back to 2025 its requirement for 60% of components of solar panels to be made locally, a measure aimed at encouraging more investment. (Reporting by Ayushman Ojha, Fransiska Nangoy, Dewi Kurniawati; Editing by Martin Petty and Savio D'Souza)