Singapore Interconnectors Could Unlock 25 GW Of Renewable Energy

A new Rystad Energy research suggests that if all proposed regional interconnections to Singapore are realized, these could unlock up to 25 GW of renewable and energy storage projects, worth over $40 billion in regional investments. It would span hydropower, solar and offshore wind, with Singapore at its core.  

Singapore is banking on regional interconnections, primarily via subsea cables, to link national grids and enable cross-border electricity trade. With this, it seeks to reduce its overwhelming dependence on combined-cycle gas turbines (CCGT), which currently supply 96% of its power. 

“Singapore stands to benefit the most from Southeast Asia’s emerging regional grid, but realizing these gains will require coordinated, win-win cooperation with supplier countries, many of which may see limited direct advantage in linking up with another market,” according to Rystad Energy’s Lead Renewables & Power Analyst (APAC), Raksit Pattanapitoon.   

Among the proposed regional interconnectors to Singapore is for solar power supply from Indonesia (see 1.2 GW Solar Development In Indonesia). In 2024, the country gave conditional licenses to 5 low-carbon electricity projects in Indonesia while announcing plans to raise its low-carbon electricity goal to 6 GW (see Singapore To Raise Low-Carbon Electricity Import Goal To 6 GW).  

Rystad Energy says that electricity imports via ASEAN interconnectors may offer a more cost-effective alternative to building new domestic CCGT capacity for the country. 

In terms of the levelized cost of electricity (LCOE) comparison, solar + storage projects can be a source of reliable electricity for Singapore, since these can already achieve load factors of over 90%, suggests Rystad. This is way higher than the current Electricity Market Authority (EMA) requirement of projects to achieve an annual load factor of at least 60% within 5 years of commercial operation in Singapore. 

“As recent blackouts in the Iberian Peninsula have shown, grid resilience must also be a key priority. Weak interconnections and insufficient grid-connected storage are common contributors to major outages,” explains Pattanapitoon. “Singapore can address both vulnerabilities by deepening regional integration and tapping into neighboring renewable resources, helping scale a resilient regional grid and strengthening energy security.”  

Recently, TotalEnergies and RGE joint venture Singa Renewables secured a conditional license from the EMA to import up to 1 GW of solar energy from Indonesia (see TotalEnergies, RGE Plan 1 GW Solar Plus Storage In Indonesia).