Singapore and Indonesia signed a Memorandum of Understanding (MoU) on Friday to strengthen low carbon energy project and cross-border electricity trade, according Singapore's Ministry of Trade and Industry.
The MoU was signed by Singapore's Second Minister for Trade and Industry Tan See Leng and Indonesian Minister for Energy and Mineral Resources Arifin Tasrif in Jakarta on the sidelines of the Indonesia Sustainability Forum.
The deal brings Singapore a step forward towards its target to import up to 4 gigawatts of low-carbon electricity by 2035.
Under the MoU, both countries will cooperate to support the development of commercial projects for cross-border trading of low-carbon electricity, facilitate such projects according to their respective laws and regulations, and collaborate on interconnections for cross-border electricity trading.
"This MoU serves as an opportunity for us to strengthen our collaborations on cross-border electricity trade. Doing so supports the decarbonisation of both countries. I am confident that this MoU will pave the way for businesses to explore new areas of investments in renewable energy," Tan said.
Singapore's Energy Market of Authority will also be granting the Conditional Approvals (CAs) to five projects to import a total of 2 gigawatt of low-carbon electricity from Indonesia to Singapore.
The CAs facilitate companies in obtaining the necessary approvals and licences for their projects, including the setting up of manufacturing plants for solar photovoltaics and battery energy storage systems in Indonesia.