New MOUs power Singapore-Indonesia 3.4GW electricity trade goal

Danantara, Keppel, and Sembcorp to explore low-carbon power offtake.

Singapore and Indonesia are moving to speed up cross-border electricity trade (CBET), with agreements supporting low-carbon power imports and grid links toward 3.4 gigawatts or more of projects by 2035. 

Danantara Indonesia, through its investment arm Danantara Investment Management, signed memoranda of understanding (MoUs) with Keppel Electric and Sembcorp Utilities to explore the offtake of imported low-carbon electricity.

Meanwhile, an MoU between Singapore Energy Interconnections and Danantara will facilitate information-sharing and potential collaboration on commercial and technical issues related to cross-border interconnector development.

The Indonesian government has designated Danantara to spearhead CBET between the two countries.

Singapore and Indonesia will develop their respective regulatory frameworks, policies, and requirements for cross-border electricity trade to support the projects. 

These include enabling conditions for investment based on agreed milestones and timelines.

Both governments will also develop and adopt a cross-border renewable energy certificate framework.