Singapore looks to Australia and Malaysia for renewable energy to meet rising demand

As energy demand continues to surge, driven largely by data centres, Singapore is turning to Australia’s deserts and Malaysia’s rainforests for clean energy solutions. This week, Australia announced a massive solar farm aiming to deliver up to 2 GW of power to Singapore via undersea cable.

Singapore plans to peak carbon emissions by 2030 and achieve net zero by 2050. However, with limited space and unfavourable conditions for wind or hydropower, the city-state relies heavily on imported oil and gas. Locally, Singapore aims to generate 2 GW from solar power by 2030, but it faces significant space constraints.

To meet the growing demand, especially from data centres expected to account for 12% of the country’s electricity use by 2030, Singapore’s Energy Market Authority has approved imports of 1 GW from Cambodia, 2 GW from Indonesia, and 1.2 GW from Vietnam, utilizing a mix of solar, wind, and hydropower. These renewable imports are expected to account for at least 30% of Singapore’s electricity by 2035.

Challenges remain, including transmission distances, energy losses, and regulatory approvals from multiple countries. The undersea cable project, spanning 4,300 km, requires approvals from Singapore’s regulators, Indonesia’s government, and Australian Indigenous communities.

To ensure energy security and strategic flexibility, experts emphasize the importance of diversifying renewable energy sources. Singapore’s strategy could also encourage regional cooperation through bodies like ASEAN and inspire a broader clean energy transition across Southeast Asia, leveraging the region’s untapped renewable potential.