Singapore is set to import 1.4 gigawatts (GW) of electricity from two new solar power projects in Indonesia, according to Senior Minister Teo Chee Hean. This move is part of Singapore’s strategy to boost its low-carbon energy supply. The new agreement adds to an earlier deal for 2 GW of solar power from Indonesia.
The projects will deliver clean electricity generated by solar panels and battery storage systems. This deal helps Indonesia transition from being a coal and natural gas exporter to a renewable energy exporter. Indonesian Senior Minister Luhut Pandjaitan highlighted that this collaboration is a key step in shifting the country’s energy export focus.
The total value of these projects is estimated at around $20 billion. Conditional approvals for the 1.4 GW power imports will be given to the consortia led by TotalEnergies-RGE and Shell-Vena. Singapore’s Minister of Manpower and Second Minister for Trade and Infrastructure, Tan See Leng, announced this at the Indonesia International Sustainability Forum in Jakarta.
The previously approved 2 GW will also receive conditional licenses this year. These projects, which involve five Indonesian and Singaporean companies, are expected to be operational by late 2027. Companies like Pacific Medco Solar Energy, Adaro Solar International, and Keppel Corp Ltd are involved in these initiatives. Keppel will use a shared subsea transmission cable system for their project.
Plans for transmitting the additional 1.4 GW are still in development. Indonesian Deputy Coordinating Minister Rachmat Kaimuddin expects this extra power to come online around 2030.
This partnership marks a significant step in both countries’ efforts to enhance their renewable energy capabilities and reduce reliance on fossil fuels.
