Singapore and Indonesia Ink Low Carbon Energy Agreement

Singapore and Indonesia have signed a Memorandum of Understanding (MoU) to strengthen low-carbon energy projects and cross-border electricity trade.

The MoU brings Singapore a step forward towards its target of importing up to four gigawatts of low-carbon electricity by 2035.

Under the terms of the MoU, both countries will cooperate to support the development of commercial projects for cross-border trading of low-carbon electricity, facilitate such projects according to their respective laws and regulations, and collaborate on interconnections for cross-border electricity trading.

This agreement builds on existing MoUs signed between Singapore and Indonesia that call for stronger bilateral energy cooperation that including the MoU on Renewable Energy Cooperation signed in March 2023, and the MoU on Energy Cooperation signed in January 2022.

Singapore’s Energy Market Authority will also be granting Conditional Approvals (CAs) to five projects to import a total of two gigawatts of low-carbon electricity from Indonesia to Singapore.

The CAs facilitate companies in obtaining the necessary approvals and licences for their projects, including the setting up of manufacturing plants for solar photovoltaics and battery energy storage systems in Indonesia.