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The two countries will set up a framework to drive investment in developing renewable energy manufacturing industries in Indonesia and cross-border electricity trading projects, according to a statement by Singapore’s Ministry of Trade and Industry (MTI).
The two countries will be encouraging investment in Indonesia’s upstream and downstream renewable energy manufacturing and capacity including solar photovoltaic (PV) and battery energy storage systems (BESS). They will use the investment to export electricity to Singapore; supply renewable energy to Indonesia via solar farms and battery storage systems, and for green electricity export and hydrogen and ammonia export.
The two countries will also work together to encourage cross border electricity trading between Singapore and Indonesia.
Energy expert William Stroll of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “It is encouraging to see Singapore and Indonesia reaching agreement on the potential export of renewable energy from Indonesia.”
“Indonesia introduced a temporary ban on the export of green energy in June 2022 which had the potential to hinder Singapore’s plan to import up to 4GW of green power by 2030, but the signing of this new accord is a very positive development towards the creation of the ASEAN [Association of Southeast Asian Nations] power grid,” he said.
In March 2022, Singapore and Indonesia signed an agreement to cooperate on climate change and sustainability. The two countries agreed to work together on carbon pricing and markets, clean technology and solutions, and green and blended finance.
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