With large data centres set to further increase already high energy demand, the small city-state of Singapore is turning to the deserts of Australia and the rainforests of Malaysia for clean energy. Australia has announced a massive solar farm project that hopes to supply Singapore with two gigawatts (GW) of power via a submarine cable.[i]
Singapore aims to maximize carbon emissions by 2030 and reach net zero emissions by 2050. However, the country is heavily dependent on imported oil and gas. These goals include increasing the country’s energy efficiency by 36% compared to 2005 levels. Singapore has also allocated large budgets for R&D and introduced energy efficiency standards and labeling for lamps in 2015.
The government plans to increase solar power capacity and reduce the country’s greenhouse gas emissions by 16% by 2020 compared to the current situation, with national emissions peaking in 2030.[ii] The country’s “city-state” formation and high growth rates since the early 2000s have radically increased its need for imported fossil fuels. Looking at 2021 data, it is seen that oil accounts for 70% of energy production in the country, natural gas and LNG for 27%, and coal for 1%.[iii]
Singapore has neither the right conditions for wind nor hydropower generation, and while it aims to generate two gigawatts of locally installed solar power by 2030, it does not have enough land to build large solar farms. Demand is expected to continue to grow, however, driven by data centres, which already account for seven per cent of Singapore’s electricity consumption. This is projected to rise to 12 per cent by 2030. To meet this demand, Singapore’s Energy Market Authority has already given conditional approvals for imports of 1 GW from Cambodia, 2 GW from Indonesia and 1.2 GW from Vietnam. These would come from a mix of solar and wind power, as well as hydropower, a controversial energy source linked to deforestation and environmental degradation linked to the region’s dams.[iv]
According to think tank Ember, renewable energy imports are expected to meet at least 30 percent of Singapore’s electricity needs by 2035. However, Niels de Boer, chief operating officer at the Nanyang Energy Research Institute, warned of “many challenges” such as transmission distances, power losses and disruptions. Plans call for a 4,300-kilometer (2,670-mile) submarine cable, which is still awaiting approval from Singapore’s energy regulator, the Indonesian government and Indigenous communities in Australia. The city-state has already experienced some problems with hydroelectric power transmission from Laos via Thailand and Malaysia, according to Ong Shu Yi, ESG research analyst at OCBC Singapore.[v]
Canberra’s recent approval of a A$20 billion (around $13.5 billion) solar project represents a bold step forward in the country’s renewable energy ambitions. It could fundamentally change Australia’s energy landscape and increase the country’s role in the global green energy drive. However, while the project opens up promising new opportunities for Australia, it also brings significant environmental and economic challenges that must be managed carefully. Australian Environment Minister Tanya Plibersek has highlighted the multi-faceted impact of the project. It is not just a step towards meeting the growing demand for green energy across Australia and the region, but a critical part of Australia’s strategy to become a leader in renewable energy. As the world moves away from fossil fuels, projects like these are key to Australia’s transition to a more sustainable energy mix.
However, the project is subject to strict environmental requirements to ensure it does not harm the country’s unique ecosystems. One of these requirements is to protect small, rabbit-like marsupials that are in danger of extinction in Australia. This highlights the delicate balance Australia must strike between protecting its natural heritage while achieving its green energy goals. The SunCable project will be implemented in two phases with the aim of providing up to 6GW of green energy to large industrial consumers in Darwin, the capital of the Northern Territory, and Singapore.
The company’s timetable is for a final investment decision to be made by 2027, with first electricity deliveries expected to begin in the early 2030s. This timeline aligns with Australia’s wider energy transition goals and increasing global demand for renewable energy. The approval of the project is seen as a major victory for the government, particularly in its efforts to accelerate the transition to renewable energy, particularly against political opponents who are advocating nuclear power to replace the country’s ageing coal-fired power stations by 2050. The debate over nuclear power remains contentious in Australia, where nuclear power has been banned, making the transition to renewable energy even more critical.[vi]
The project is particularly exemplary in terms of energy. The country, which has high-level laws on the protection of natural life and areas, has difficulties in solar energy, which is promoted as sustainable energy. On the other hand, increasing energy investments in Singapore brings the possibility of increasing the country’s sectoral investments and reducing its dependency in the future.
[i] “Singapore and Australia: Ambitious project that will change the energy game”, News.AZ, https://news.az/news/-singapore-and-australia-ambitious-project-that-will-change-the-energy-game, (Date of Access: 22.08.2024).
[ii] “Energy system of Singapore”, IEA, https://www.iea.org/countries/singapore, (Date of Access: 23.08.2024).
[iii] “Energy Statistics Data Browser”, IEA, https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser?country=SGP&fuel=Energy%20supply&indicator=TESbySource, (Date of Access: 23.08.2024).
[iv] “Energy-hungry Singapore eyes deserts, forest for renewables”, AFP, https://www.afp.com/, (Date of Access: 22.08.2024).
[v] “Regional grids key to Singapore’s energy future”, Ember, https://ember-climate.org/insights/research/regional-grids-key-to-singapores-energy-future/, (Date of Access: 23.08.2024).
[vi] “Australia greenlights $19bn solar project to export power to Singapore”, Al Jazeera, https://www.aljazeera.com/news/2024/8/21/australia-greenlights-19bn-solar-project-to-export-power-to-singapore, (Date of Access: 21.08.2024).
