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Written reply to PQ on the Australia-Asia Power Link and supply of renewable energy for Singapore

Written reply to PQ on the Australia-Asia Power Link and supply of renewable energy for Singapore


Dr Lim Wee Kiak: To ask the Minister for Trade and Industry (a) whether the Australia-Asia Power Link project which is to supply 15% of renewable energy for Singapore is part of our Green Plan; and (b) given the multi-billion dollar capital investment, whether this will translate to higher energy cost.

Written Answer by Minister for Trade and Industry Gan Kim Yong

1. Under the Energy Reset pillar of the Singapore Green Plan 2030, Singapore will focus on all four supply "switches" to decarbonise our electricity supply. These comprise making our natural gas generators more efficient, maximising solar energy, importing renewable energy, and exploring the use of low-carbon alternatives like hydrogen.

2. Singapore has limited renewable energy resources. We are on track to achieving our target of at least two gigawatt-peak of solar energy by 2030, but this will only constitute around 3% of our projected total energy consumption. We will need to supplement this with imported low-carbon energy, while we develop other low-carbon alternatives like hydrogen.

3. Electricity imports will be a key needle-mover in our energy transition in the near to medium term. We target to import up to four gigawatts of low-carbon electricity by 2035, which will constitute around 30% of our electricity supply.

4. To facilitate electricity imports, the Energy Market Authority will conduct an open and competitive Request for Proposals (RFP) process. Interested companies, including Sun Cable which initiated the Australia-Asia Power Link project, will need to participate in the RFP.

5. Imported electricity may or may not be more expensive than electricity produced in Singapore. It depends on several factors, including the distance of their source location and technology used, and other factors such as the cost of natural gas. The RFP process will ensure that we select bids that are cost-competitive and most suitable for Singapore.

6. As we advance in our energy transition, the Government will continue to work closely with our workforce, researchers, industries, and consumers, to achieve our goal of a cleaner, more efficient and secure energy future for Singapore.


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