Singapore clears plans to import clean energy from Malaysia

Singapore has granted conditional approval to two companies for importing renewable power from a project in Malaysia's Johor state, as part of the city-state's efforts to enhance energy security through cross-border connections. The project, spearheaded by Sembcorp Utilities Pte Ltd in collaboration with Malaysia's KPRJ Environment Sdn Bhd and Qua Energy, aims to provide approximately 300MW of renewable energy.

The project includes floating solar installations with a peak capacity of 2.2GW and up to 4.3GWh of battery storage. Operations for this project are slated to commence in 2029.

Additionally, Southern Solar Alliance Pte Ltd, a subsidiary of Malaysia's Ditrolic Energy Holdings, received authorization to import 600MW from a solar and battery facility in Malaysia. This facility is expected to start commercial operations around the same timeframe as the first project, around 2029.

Both companies, according to the Energy Market Authority (EMA), will need to secure all necessary approvals, finalize power purchase agreements with buyers, amass sufficient financing, and achieve various project development milestones before reaching financial closure.

Singapore, which relies heavily on imported natural gas for most of its electricity, has previously approved plans to import clean power from countries such as Indonesia, Malaysia, Australia, and Cambodia. This new project, designed to meet the energy demands of both Singapore and Malaysia, will utilize existing and future subsea interconnection infrastructure between the two countries to facilitate cross-border power flows.

The project represents one of several planned connections in Southeast Asia aimed at carrying low-carbon energy across borders. Resource-scarce Singapore is working towards bolstering energy security and achieving its climate goals by importing about 6GW of low-carbon energy by 2035.