AUS
NZ
UK
CA
USA
IND
Highlights
- Singapore grants long-term licences for low-carbon energy imports.
- Companies can recover upfront investments over 30 years.
- Projects span across multiple countries, aiming for 6GW of power by 2035.
In a notable move towards sustainability, Singapore's Energy Market Authority (EMA) has announced its plan to issue 30-year import licences for companies developing low-carbon energy projects. This decision is intended to provide companies with sufficient time to recover their significant initial investments, particularly given the high costs associated with such ventures.
Singapore has set an ambitious goal of importing 6 gigawatts (GW) of low-carbon electricity by 2035. To achieve this, the EMA has already conditionally approved projects in four countries: Australia, Cambodia, Indonesia, and Vietnam. These efforts align with Singapore's long-term strategy to transition towards cleaner and more sustainable energy sources.
Several projects under consideration involve large solar farms, battery storage systems, and cross-country infrastructure. For example, (ASX:SYD) is expected to contribute significantly through its solar initiatives. The financial outlay for these projects is considerable, requiring not only the development of renewable energy infrastructure but also the installation of power cables connecting Singapore to its neighboring countries. The EMA acknowledges that this infrastructure will need to handle substantial energy loads, adding further to the capital investment.
Puah Kok Keong, CEO of the EMA, emphasized during the Singapore International Energy Week that the scale of the required infrastructure demands substantial funding. He noted that long-distance power cables, for example, add significantly to the overall project expenses, making long-term licensing essential to support financial viability.
The 30-year licence is designed to give companies enough time to recover their investments, especially since many of these projects come with a high upfront cost. This move by the EMA highlights the city-state's commitment to advancing its clean energy objectives and ensuring that energy imports meet both environmental and economic needs.
