Singapore approves import of 900MW clean energy from Malaysia

Singapore has cleared plans to import about 900MW of renewable energy from Malaysia through two separate projects, both expected to start operations around 2029.

Singapore's Sembcorp Utilities Pte Ltd will import about 300MW of renewable energy from a project featuring floating solar with 2.2GW of peak capacity and up to 4.3GWh of battery storage, according to a company statement on Friday.

The project will be undertaken by Sembcorp, Malaysia's state-owned KPRJ Environment Sdn Bhd and Qua Energy.

Separately, Southern Solar Alliance Pte Ltd, a unit of Malaysia's Ditrolic Energy Holdings, received approval to import 600MW from a solar and battery facility in Malaysia, and is also set to commence commercial operations around 2029, according to a release by Singapore's Energy Market Authority (EMA).

Both companies "will need to obtain all requisite approvals from relevant jurisdictions, conclude power purchase agreements with buyers, secure sufficient financing, and conclude various project development milestones in order to reach financial close," EMA said.

Sembcorp said the project is designed to meet energy demand in both Singapore and Malaysia, and will "leverage the existing and future subsea interconnection infrastructure between both countries to facilitate cross-border power flows."

The island nation, which depends on imported natural gas for most of its electricity, has so far approved plans to import clean power from countries including Indonesia, Malaysia, Australia and Cambodia.

Resource-scarce Singapore is seeking to shore up energy security and meet its climate goals by importing about 6GW of low-carbon energy by 2035.

It is the latest of several planned connections in Southeast Asia carrying low-carbon energy across borders.