Singapore is moving toward importing more clean electricity from other countries through regional power grid connections. The country currently depends on natural gas for almost all of its electricity but aims to diversify. New interconnections, mainly using subsea cables, are part of this shift.
Data from Rystad Energy shows that if all proposed cross-border grid projects are completed, they could support up to 25 gigawatts (GW) of renewable energy and energy storage capacity. This includes solar, hydropower, and offshore wind projects across Southeast Asia. The potential investment could exceed $40 billion.
By connecting with nearby countries, Singapore could cut up to 13 million tonnes of carbon emissions every year. This method of importing electricity is seen as both cleaner and possibly cheaper than building new power plants within the country. It would also protect Singapore from changes in global gas prices.
Singapore’s current power generation relies on combined-cycle gas turbine (CCGT) plants. These use natural gas to generate electricity and then reuse the heat to make more power through steam turbines. While CCGTs are efficient, studies show that electricity imports through regional grids may now offer a lower cost.
To make this possible, Singapore’s Energy Market Authority (EMA) has set rules for power imports. Imported projects must run at least 60% of the time within five years of starting. Projects that operate more often may spread costs better and reduce the price of electricity over time.
Hydropower sources from Malaysia, Vietnam, and Cambodia are some of the main candidates. Longer transmission lines increase the benefit of better cost-sharing. Projects using solar panels and batteries are also being designed to meet the same reliability standards.
For example, optimized solar-plus-battery systems can now run at above 90% capacity. These setups could meet Singapore’s power needs around the clock, similar to traditional power plants.
