Singapore is set to become a pivotal hub in Southeast Asia’s renewable energy landscape, as it shifts from its heavy reliance on natural gas to regional grid interconnections. According to Rystad Energy, these interconnections, primarily through subsea cables, could unlock up to 25 gigawatts (GW) of renewable energy capacity, potentially attracting over $40b (£32b) in investments. This move aims to decarbonise Singapore’s energy supply and stabilise electricity prices by reducing dependency on the volatile global gas market.
The proposed interconnections could significantly reduce Singapore’s carbon emissions by up to 13 million tonnes of CO₂e annually. This initiative not only supports Singapore’s sustainability goals but also enhances its energy resilience by diversifying its energy sources. “Singapore stands to benefit the most from Southeast Asia’s emerging regional grid,” said Raksit Pattanapitoon, Lead Renewables & Power Analyst at Rystad Energy. However, he emphasised the need for coordinated cooperation with neighbouring countries to realise these benefits.
Currently, natural gas accounts for 96% of Singapore’s power generation. The Electricity Market Authority (EMA) is crucial in ensuring a reliable supply of imported low-carbon electricity, requiring projects to achieve a 60% load factor within five years. Solar-plus-storage hybrid systems, which can achieve load factors above 90%, are seen as a viable alternative to traditional gas turbines.
Nevi Cahya Winofa, an analyst at Rystad Energy, highlighted that these hybrid systems could offer lower costs than anticipated. As Singapore engages with its neighbours, it must secure unique advantages to maximise shared value in the potential regional power grid.
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