S'pore raises 2035 target of imported low-carbon electricity to 6GW

Singapore has turbocharged its drive to reduce the carbon footprint of its power sector, with a new target of importing 6 gigawatts (GW) of low-carbon electricity from its neighbours by 2035.

- Shabana Begum and Hariz Baharudin

This is a 50 per cent increase from the previous target of 4GW, which was set in 2021.

Electricity imports are expected to make up around a third of the country's energy needs by 2035, and commercial operations under some of these import contracts could begin from 2028, the Energy Market Authority (EMA) said on Sept 5.

The Republic currently relies on natural gas, a fossil fuel, for around 95 per cent of its electricity generation. About 40 per cent of the nation's carbon emissions comes from the power sector.

The EMA said it decided to raise its import targets due to "the strong interest by credible parties to participate in electricity import projects, and to ensure adequate supply to meet Singapore's future energy needs".

By late 2023, Singapore was in the exploratory stages of new deals with firms in Indonesia, Cambodia and Vietnam to import 4.2GW of electricity, which was already above the initial target.

There are three stages involved before a company is granted an electricity import licence from EMA.

The first stage entails the firm getting "conditional approval" from EMA, which means the regulator has found that a project's proposal is technically and commercially viable. At this point, the firm will begin further surveys and feasibility studies.

If it can demonstrate its ability to meet the requirements of both the host country and Singapore, EMA will then award it a conditional licence. This is given to projects that have been found to be technically and commercially viable, and are in an advanced developmental stage, the agency said.

The third and final step is when EMA issues importer licences to companies.