Singapore has signed a pact with Indonesia to develop renewable energy capabilities and to import renewable energies such as solar power and green hydrogen from Indonesia. The MoU was signed by Indonesia’s Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan and Singapore’s Senior Minister and Coordinating Minister for National Security Teo Chee Hean in Singapore.
As per the Memorandum of Understanding (MoU) on Renewable Energy Cooperation, it would facilitate the establishment of a framework to mobilise investments in boosting the development of renewable energy manufacturing industries in Indonesia and providing impetus to the cross-border electricity trading projects.
Speaking on the occasion, Singapore Prime Minister Lee Hsien Loong hoped that the MoU will support commercial arrangements on the development of renewable energy capabilities, transmission infrastructure, which is the backbone of a country’s power system, and the cross-border electricity trade. With cross-border electricity trade can help Singapore to achieve its goal of importing up to 4 GW of low carbon electricity by 2035, making up about 30 per cent of the country’s projected energy supply by 2035.
He further added, “It will strengthen the energy infrastructure, energy transition and energy security for both Singapore and Indonesia, and also support regional initiatives like the Asean power grid. It is a win-win outcome.”
With this deal there will be tremendous opportunities for Indonesia to develop solar photovoltaics (PV) and battery energy storage systems, which store excess power for use later. This will boost investments for electricity export projects to Singapore. These projects, in turn, can fulfill the domestic energy needs of Indonesia as well as exporting the renewable energy that includes the export of green electricity and in future there are targets for producing hydrogen and ammonia, harnessing the solar PV systems and manufacturing battery storage facilities in Indonesia, noted, the Ministry of Trade and Industry (MTI) . The deal is expected to support and develop green corridors in the Riau Islands and other potential regions in Indonesia, he added.
The pact would promote investments to attract other industries, which are into harnessing renewable energy for such green corridors in Indonesia, including industrial hubs, industrial parks and smart cities. Both governments are looking forward to tap potentials in renewable sector that would meet Indonesia and Singapore’s requirements. Soon, suitable proposals will be selected and announced. The governments are open to any new commercial proposals that would be mutually beneficial for both the nations.
