Energy-hungry Singapore seeks renewable energy sources in deserts and forests

With massive data centres set to increase its already massive energy needs, the tiny city-state of Singapore is turning to the deserts of Australia and the rainforests of Malaysia for clean energy.

Australia this week announced the construction of a massive solar farm that will provide Singapore with two gigawatts (GW) of power via an undersea cable.

Singapore aims to achieve peak carbon emissions by 2030 and net zero emissions by 2050, but the country is largely dependent on imported oil and gas.

The city does not have the conditions to produce wind or hydropower, and although it aims to generate two gigawatts of locally installed solar panels by 2030, it does not have the space for large-scale solar farms.

Meanwhile, demand is only set to grow, especially for data centres, which already account for seven per cent of Singapore’s electricity consumption.

By 2030, this percentage is expected to rise to 12 percent.

To meet this demand, the Singapore Energy Market Authority has already granted conditional approvals to import 1GW from Cambodia, 2GW from Indonesia and 1.2GW from Vietnam.

These devices use a mix of solar, wind and water power, which is a popular but sometimes controversial energy source in the region where it has been associated with deforestation and environmental degradation associated with dams.

– “Many challenges” –

According to think tank Ember, by 2035 renewable energy imports will account for at least 30 percent of Singapore’s electricity production.

But as Niels de Boer, chief operating officer of the Nanyang Energy Research Institute, warns, “there are many challenges,” including transmission distances, energy losses and instability.

Plans call for 4,300 kilometres (2,670 miles) of undersea cable to be laid, and the project still requires approval from Singapore energy regulators, the Indonesian government and indigenous communities in Australia.

The city-state is already feeling the effects of some of these issues, including complications in transmitting hydropower from Laos via Thailand and Malaysia, said Ong Shu Yi, an ESG research analyst at Singapore-based banking group OCBC.

There could be “divergences in how energy is transmitted across countries, as well as competition between economies for access to renewable energy.”

Singapore currently relies on imported fossil fuels, which can be purchased on the open market.

“A large-scale bilateral agreement on renewable energy imports limits Singapore’s strategic flexibility,” said Zhong Sheng, a senior researcher at the Institute of Energy Studies at the National University of Singapore.

In the event of a disruption, “there may be few alternative renewable energy sources to compensate for the losses.”

Therefore, diversifying its renewable energy sources is crucial for Singapore.

“The more diversification, the better for energy security,” said Euston Quah, director of the Centre for Economic Growth at Nanyang Technological University in Singapore.

“Having this additional Australian source of energy supply can only be a good thing.”

Experts say Singapore can also mitigate risks by engaging regional organisations such as ASEAN.

– ‘Global Trend’ –

The city is unique in some respects, with an ever-increasing demand for electricity that is five times higher than the regional average.

However, said Bradford Simmons, senior director of energy, climate and resources at Bower Group Asia, the company is not alone in looking overseas to meet its needs.

According to the International Energy Agency, Thailand already imports 12 percent of its electricity, generated from coal and hydropower.

The “mismatch” between countries that can produce renewable energy and those with huge demand for it “will only accelerate incentives for international electricity trade,” Simmons said.

“Singapore is just part of a broader global trend.”

Singapore’s demand promises to tap into the region’s “vast, untapped renewable energy potential,” said Dinita Setyawati, senior Southeast Asia energy policy analyst at Ember.

“This could accelerate the region’s energy transition towards clean energy and increase its renewable energy ambitions,” she told AFP.

Government officials from Laos to the Malaysian region of Sarawak have made particular reference to Singapore’s demands when discussing plans to increase renewable energy production.

Zhong said the city-state’s appetite and financial resources could help overcome the obstacles.

“The urgency and scale of action often depend on national policies, resources, financial capacity and technological capabilities,” he told AFP.

“Singapore’s leadership in this area can inspire more coordinated regional efforts to transition to low-carbon energy.”

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