In a significant move to enhance cross-border electricity trade, Indonesia and Singapore have inked a series of new memoranda of understanding (MoUs) during a leaders’ retreat in Jakarta. The agreements were reached between Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong, aiming to facilitate electricity exports between the two nations.
The MoUs involve Indonesia’s sovereign wealth fund Danantara, which has forged partnerships with key Singaporean entities such as Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These collaborations are set to propel the development of electricity trade, with a roadmap also agreed upon to steer future negotiations and project implementations between Danantara and the Singaporean government.
Singapore has positioned this initiative as a pivotal step in bolstering the ASEAN Power Grid, while also acknowledging Indonesia’s abundant renewable energy resources. As a part of this collaborative effort, Sembcorp, in conjunction with Indonesia’s INA sovereign fund and renewable energy firm SESNA, will undertake the development of a substantial solar power project in Central Sulawesi. This $210 million project is expected to deliver 200 megawatts of solar capacity along with an 80 megawatt-hour battery storage system.
Ongoing negotiations are focused on determining electricity pricing before the export operations commence. Singapore is planning to import 6 gigawatts of low-carbon electricity by the year 2035, with an anticipated 3.4 gigawatts projected to originate from Indonesia. This development underscores the commitment of both countries toward sustainable energy solutions and regional power integration.