Opening Remarks by 2M Tan See Leng at the Association of the Electricity Supply Industry of East Asia and Western Pacific (AESIEAP) CEO Conference

Distinguished guests,

Ladies and gentlemen,

1. Good morning, and a warm welcome to the Association of the Electricity Supply Industry of East Asia and Western Pacific (AESIEAP) CEO Conference, hosted by SP Group.

2. I am honoured to be a part of this landmark event, which marks the commencement of SP Group's two-year presidency of AESIEAP (pronounced EH-SEE-YAP) for 2024 and 2025, which will focus on enabling our region's energy transition.

3. The theme for this year’s event, “Empowering the Energy Transition”, resonates deeply with the challenges and opportunities we face in reshaping the future of our energy systems.

If we are to keep 1.5°C within reach, we will need to accelerate the shift towards cleaner, more sustainable energy systems.

But this transition cannot happen in isolation.

Empowering the energy transition means creating the right conditions for renewable energy to flourish – not just within individual countries, but within and across regions.

4. There is a critical role for power grids.

First, renewable energy sources are often located some distance away from where the power demand is.

So, we need to expand and enhance the grid to connect demand and supply.

Second, renewable energy sources such as wind and solar are intermittent.

We need to upgrade grid technologies to manage the intermittency from renewable energy.

5. Today’s focus on regional grids highlights not just the importance of the grid within each country, but also the role of cross-border energy collaborations in enabling energy transitions.

The concept of a regional grid is not just a technical solution.

It is pivotal in catalysing decarbonisation and enhancing energy security.

That is why within Southeast Asia, we have a shared vision of an ASEAN Power Grid.

• Greater grid interconnectivity allows us to maximise the region’s diverse renewable energy potential by matching renewable energy rich areas to demand.

For example, solar, hydro and wind power produced in Indonesia, Laos, Cambodia and Vietnam can be exported to Singapore via subsea and cross-border interconnectors.

• These projects have multiple benefits.

• First, trading arrangements improve project bankability and accelerate the development of new renewable energy capacity.

• Second, the construction of new renewable energy capacity attracts upstream investments to spur the development of manufacturing capabilities for solar PV and battery energy storage systems, leading to the creation of good jobs in the region.

• Third, as more of such projects are deployed at scale and across multiple countries in the region, we create more pathways for electricity to be traded to support one another’s grids, and in totality, we have a more resilient and cost-effective grid that transcends national boundaries.

6. Singapore wants to do its part to spur the development of an ASEAN Power Grid.

We have raised our electricity imports ambition to around 6 gigawatts by 2035.

We have granted Conditional Licences or Conditional Approvals to several projects.

We also aim to bring in more low-carbon electricity imports beyond 2035 to keep pace with our energy demand.

7. However, the Government cannot do this alone.

SP Group’s experience in managing grid infrastructure puts them in a good stead to work with international and regional partners on renewable energy development in the region.

We will thus be working with SP Power Interconnect (SPPI) as the technical and development partner to collaborate with importers of low-carbon electricity in implementing interconnector projects.

8. The delegates gathered here have the power to shape the energy transition for your respective jurisdictions, and if we work together, we can also shape the region’s energy landscape for decades to come.

 I wish you a successful conference ahead.

9. Thank you.