Singapore and ADB renew 3-year pact to back ASEAN power grid projects

The cross-border grid expansion tests funding and technical limits in Southeast Asia.

Singapore’s Energy Market Authority (EMA) and the Asian Development Bank (ADB) have renewed a memorandum of understanding for another three years to support cross-border energy projects in Southeast Asia, including projects exporting electricity to the city-state.

The bank said in a press release that the agreement focuses on renewable energy generation and grid interconnector projects across the Association of Southeast Asian Nations (ASEAN) region, which supports the ASEAN Power Grid initiative.

Both ADB and EMA will work on barriers to project development, including project bankability, risk allocation, financing, and technical issues linked to subsea cable infrastructure.

This comes as the bank has pledged up to $12.8b (US$10b) over the next decade for the ASEAN Power Grid.

The funding will cover cross-border transmission infrastructure, national grid projects, and renewable energy developments linked to regional electricity trade.

Masato Kanda has also announced an $89.6b (US$70b) regional connectivity programme in early May, focusing on power grids, cross-border electricity trade, and broadband infrastructure across Asia and the Pacific.

Scott Morris, Vice-President for East and Southeast Asia and the Pacific at ADB, said the partnership addresses challenges in cross-border electricity trade in Southeast Asia.

“Regional power interconnections are critical enablers in strengthening energy security and supporting decarbonisation in Southeast Asia,” said Chua Shun Loong, Assistant Chief Executive of the Energy Policy Division at EMA.

(US$1 = SG$1.28)