Written reply to PQ on approval process and project realisation timelines for low-carbon electricity imports approved by Energy Market Authority

Question:

Mr Victor Lye: To ask the Deputy Prime Minister and Minister for Trade and Industry regarding the low-carbon electricity imports approved by the Energy Market Authority (a) how is the delivery likelihood of each approved project assessed; (b) what are the assessed proportion of approved projects that will materialise and the expected timelines; and (c) what are the contingency measures to address any delay or non-realisation of a significant share of announced imports. 

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.                  For an electricity import project to commence operations, the project developer would need to: (i) secure regulatory approvals from relevant jurisdictions; (ii) conclude power purchase agreements with buyers; and (iii) secure sufficient financing. The project must also reach development milestones, such as the completion of subsea surveys, and fulfil the Energy Market Authority’s (EMA) technical requirements, to be considered for an Importer Licence. 

2.                  If the developer can meet these milestones and requirements within the next one to two years, they could begin commercial operations by the end of this decade. 

3.                  EMA will continue to engage all companies with credible proposals that can contribute to Singapore’s decarbonisation. 

4.                  Beyond electricity imports, the Government is pursuing other pathways to decarbonise. We are maximising domestic solar deployment and actively building our capabilities to assess the potential of low-carbon energy sources, such as hydrogen, advanced geothermal, and nuclear energy. There are also other ongoing efforts beyond decarbonising our energy mix, including sourcing high quality carbon credits and encouraging energy efficiency measures. As part of our strategy to meet a projected increase in electricity demand in the future, we have also invested in building a second LNG terminal, which will be ready by 2030.