Singapore to miss 2035 green-power import target: Wood Mackenzie report

Singapore aims to import 6 gigawatts of low-carbon electricity by 2035, but according to a report from Wood Mackenzie, it will likely miss this target significantly. The country has already approved 9.25 GW of import capacity across six corridors, but none of these projects has progressed beyond the approval stage or commenced construction.

Currently, Singapore relies on natural gas for up to 95% of its electricity generation. By 2035, imported green power is expected to account for only 2% of the country's power mix, meeting approximately one-third of projected demand.

Several key obstacles stand in the way of achieving Singapore's green-power import target. These include export permit regimes, project bankability, cross-border transmission financing, and the absence of a mechanism for buyers to claim the carbon value of imported power. Among the potential corridors, Malaysia is the only one with a credible path to delivering this capacity by the decade's end, with an existing interconnector supplying up to 1 GW of power.

Malaysia's EMA approved 900 MW of imports from Johor in August, including 300 MW for Sembcorp Utilities, with the first deliveries likely to start in 2029.

Other countries such as Sarawak and Indonesia have also made progress, with the latter accounting for 37% of the approved pipeline. However, progress in both these countries has faced challenges due to export permit requirements and local content rules. Indonesia, Vietnam, Cambodia, and Australia together make up 43% of the pipeline, but all of these projects remain in the conditional approval stage, with no visible construction timeline.

Imported power must compete with Singapore's wholesale electricity prices, and the EMA has expanded plans for hydrogen-ready gas-fired generation to support its green-energy ambitions.