From where does Singapore import low-carbon electricity? How is the energy transition reshaping electricity trade?

Long-term Impact of the Energy Transition on Electricity Imports Due to its geographical isolation—surrounded entirely by sea—Singapore has long been self-sufficient in electricity. The interconnection line built with Malaysia in the 1980s was used solely for emergency grid stability support, not for large-scale electricity imports. As the regulator, the Energy Market Authority (EMA) successfully balanced multiple objectives—including high supply reliability and relatively low consumer costs—by promoting cleaner generation fuels (replacing coal- and oil-fired power with natural gas), diversifying fuel sources (constructing LNG import terminals), and liberalizing the electricity market (adding more generation units to enhance competition on the supply side). When ASEAN launched the Lao PDR–Thailand–Malaysia–Singapore Power Integration Project (LTMS-PIP) in 2016, Singapore chose not to participate for several reasons: First, it was then undergoing electricity market reform; its natural gas-fired generation capacity was significantly oversupplied—available capacity exceeded peak load by approximately 80%, far exceeding reserve requirements—and abundant LNG supplies eliminated any risk of electricity shortages. Second, Singapore had already achieved a high share of natural gas generation and thus faced no urgent policy-driven need to shift toward renewables. Third, integrating hydropower from multiple countries into its domestic electricity market would introduce regulatory and technical management complexities. At that time, EMA’s policy priorities centered on enhancing supply diversity, fostering competition, improving supply security, and lowering consumer costs—electricity imports were not considered a priority. That changed as pressure mounted from the energy transition. In December 2015, the Singapore government signed the Paris Agreement on climate change; in 2016, it released its Climate Action Plan, pledging to reduce greenhouse gas emission intensity by 36% relative to 2005 levels by 2030 and to peak emissions by that year; in 2020, Singapore strengthened its net-zero commitment, targeting a 50% reduction from peak emissions by 2050; and in 2022, it further upgraded that pledge to full carbon neutrality by 2050. To support these energy transition commitments, EMA rolled out a series of initiatives: in 2019, it unveiled the “Four Switches” roadmap for phased energy transition; in 2020, it rejoined the LTMS-PIP; and in 2021, it launched a 100 MW electricity import pilot with Malaysia and issued an open call for proposals to import up to 4 GW of electricity. Clearly, Singapore’s drive to import low-carbon electricity stems directly from its energy transition goals—not merely traditional cross-border electricity objectives such as “security and reliability” or “affordability.” Similarly, the carbon-neutrality–driven energy transition is significantly influencing the development of the ASEAN Power Grid. In the original ASEAN Interconnection Master Plan Study (AIMS 2003), cross-border interconnections primarily aimed to alleviate electricity shortages and ensure livelihoods and economic development through mutual power support. Hydropower and thermal power development across ASEAN countries emphasized leveraging comparative resource advantages, with cross-border electricity trade driven largely by cost-effectiveness of energy commodities. In contrast, the updated ASEAN Interconnection Master Plan Study (AIMS 2020) explicitly identifies “expanding cross-border electricity trade and integrating higher shares of renewable energy” as a key priority. Interconnection planning now fully accounts for accommodating intermittent renewables such as wind and solar. Under an optimistic scenario where regional grids actively absorb low-carbon power, grid planning envisions Singapore maintaining a 1 GW interconnection with Malaysia by 2025 while also establishing a high-voltage direct-current (HVDC) submarine cable link with Sumatra, Indonesia. Together, these two interconnections are projected to meet over 20% of Singapore’s electricity demand.

Issue No.12 | INT’L ENERGY & ENVIRONMENT NEWSLETTER

Doane was also quoted as saying that “development bids” will play a role this year “with a goal of licensing five gigawatts of offshore wind energy by 2030, and some possible construction of offshore turbine sites in 2033.” Though the article notes that for enough electricity to reach other markets, “there would need to be upgrades to the transmission system onshore in order to have enough grid capacity.” Source: globalnews.ca/news/1130... Singapore’s Renewable Energy Utilization Reaches a Record High Data from Singapore’s national electricity market shows that in May, the growth rate of solar power generation reached its highest level since March 2024. Renewable electricity imports rose for the third consecutive month, reaching their highest level in over two years, pushing the share of renewables in Singapore’s power mix to 2.58%. Singapore imported no electricity during the same period last year; imports began only in the fourth quarter of 2024, at a small scale. Total electricity generation in Singapore increased by 0.4% in the first five months of this year. As data centers drive rising electricity demand, cross-border electricity trading is viewed as critical to reducing Singapore’s reliance on fossil fuels. Singapore currently has two cross-border electricity trading agreements: the Lao PDR–Thailand–Malaysia–Singapore (LTMS) 200 MW agreement and the 50 MW Energy Exchange (ENEGEM) pilot project with Malaysia’s national utility company. In October last year, Singapore’s Energy Market Authority (EMA) Chief Executive stated that the LTMS extension terms remain undetermined, as Singapore awaits Thailand’s clarification on transmission tariff details under the multilateral agreement. Singapore expects clean electricity imports to meet about one-third of its electricity demand by 2035.

Singapore Set to Miss 2035 Green-Power Import Target, Says Wood Mackenzie

1 day ago

Wood Mackenzie warns Singapore will miss its 2035 target of importing 6 gigawatts of low-carbon electricity as cross-border projects stall due to regulatory and financing hurdles. Reliance on natural gas remains high with only 2% projected green power mix.

reuters

2026-10-07

Singapore Set to Miss 2035 Green-Power Import Target, Says Wood Mackenzie

Singapore Set to Miss 2035 Green-Power Import Target, Says Wood Mackenzie

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