Published on 09/09/2024 at 04:42 GMT+7 Reading time
In an effort to bolster regional energy cooperation, Indonesia signed an agreement to export renewable energy to Singapore during the Indonesia International Sustainability Forum (ISF) 2024, held in Jakarta on Thursday, September 5, 2024.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan expressed optimism about the collaboration, stating that it would follow proper government and business procedures.
He emphasized the importance of this partnership in driving both investment and sustainable collaboration between Indonesia and Singapore.
"Singapore and Indonesia can play a crucial role in this initiative, not only generating profits but also contributing to climate change mitigation efforts," Luhut said at the signing event.
He highlighted that the export of clean electricity to Singapore demonstrates Indonesia's commitment to the international community in achieving net-zero emissions.
Key facts about Indonesia's renewable energy export to Singapore:
- Massive investment
The project involves a substantial investment of US$20 billion (Rp308 trillion). - Mutual benefits for both nations
The agreement will benefit Singapore by securing a clean energy supply through solar panels and battery storage systems produced in Indonesia.
For Indonesia, this partnership marks a shift from exporting fossil fuels to becoming a renewable energy exporter. Indonesia's abundant silica resources would be key to building a domestic solar panel industry.
- Source of Energy: Solar Power Plants
The clean electricity will be generated from solar power plants in Indonesia, with the components, including solar panels and batteries, will be domestically produced and therefore boosting job creation in the country.The solar power plants developed through this partnership will have a capacity of around 20 gigawatt peak (GWp), making it the largest in the world. - Five companies leading the export
Singapore's Energy Market Authority (EMA) has granted conditional approval to five companies for importing 2 GW of low-carbon electricity from Indonesia.
These companies include Pacific Medco Solar Energy, Medco Power, PacificLight Power, Gallant Venture Ltd (a Salim Group company), Adaro Green, and TBS Energi Utama.
EMA also announced plans to approve additional projects from TotalEnergies RGE and Shell Vena Energy Consortium, which will export an additional 1.4 GW of low-carbon electricity.
- Electricity Export to Begin in 2028
The export is scheduled to commence in 2028 with an initial supply of 3.4 GW. Two additional companies are expected to begin exports in 2030, expanding the capacity to meet Singapore's growing demand for renewable energy.
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