Power exports to Singapore hinge on regulatory clarity

The Vanda Solar and Battery project in the Riau Islands, set to become operational by 2029, hinges on the Indonesian government issuing its much-anticipated electricity export regulation, according to the project's developer. Indonesia has pledged to export a minimum of 3.4 gigawatts of renewable electricity to Singapore by 2035, with several projects slated to commence as early as 2029.

However, the absence of regulatory clarity from Jakarta has put pressure on the July-signed memorandum of understanding (MoU) between the two nations. Industry analysts suggest that issuing all the necessary regulations by the year-end would be "not easy," but it would provide a strong signal of policy certainty and help keep the projects on schedule.

Vanda RE, a Singapore-based renewable energy firm majority-owned by Gurin Energy, is awaiting concrete policy guidance before moving forward with the Vanda Solar and Battery project, which will generate 2 gigawatts of solar power and store 4.4 gigawatt-hours of energy. The entire output will be exported to Singapore. Enda Ginting, Gurin Energy's Indonesia country manager and Vanda RE director, stated that the company is still awaiting the government's policy on the domestic market obligation (DMO) and domestic electricity allocation.

He added that the regulation will likely take the form of a government regulation, incorporating the DMO rules into the electricity export regulations. The project is ready to launch once the export policy is issued.