Energy-hungry Singapore looks to Malaysian rainforests and Australian deserts for clean energy

The city-state 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 from data centers, which already account for 7 percent of Singapore’s electricity consumption. It’s expected to grow to 12 percent by 2030.

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.

According to think tank Ember, by 2035, renewable energy imports will account for at least 30% 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 4,300km of undersea cable to be laid, and the project still requires approval from Singapore energy regulators, the Indonesian government and indigenous communities in Australia.

There could be “divergences in how different countries transmit energy, 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 energy source can only be a good thing.”

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 “will only accelerate the incentives for international electricity trade,” Simmons said. “Singapore is just one part of a broader global trend.”

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Singapore unveils one of the world’s largest floating solar farms

Singapore unveils one of the world’s largest floating solar farms

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 can accelerate the region’s energy transition towards clean energy and increase renewable energy ambitions,” she added.

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.

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

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

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