Singapore began importing renewable energy from Laos through Thailand and Malaysia on Thursday, June 23rd, after an initial two-year power purchase deal was signed between Keppel Electric and Laos’ state-owned Electricite du Laos (EDL).
The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) would use existing interconnections to import up to 100 MW of renewable hydropower, marking the first multilateral cross-border energy trading involving four ASEAN nations.
This constitutes around 1.5 per cent of Singapore’s peak electricity usage in 2020 or enough to power approximately 144,000 four-room HDB apartments for a year.
According to a joint news release from Keppel Electric, EDL, the Laotian Ministry of Energy and Mines, and the Energy Market Authority (EMA), this is also the first renewable energy import into Singapore.
According to the authorities, the initiative will benefit all four nations participating by allowing the creation of a regional market for energy trading, boosting investments, and improving regional power supply security and cost competitiveness.
It will also help Singapore’s environmental goals under the Green Plan 2030 by utilising the region’s abundance of renewable energy.
Singapore’s sustainable energy objectives include decarbonizing the power industry and diversifying its energy supply sources to improve security.
According to the agencies, the LTMS-PIP acts as a “pathfinder” toward realising the more significant aim of an ASEAN power grid (APG).
An APG would facilitate multilateral power trade outside nearby nations in the area. According to the joint statement, it is “a critical regional endeavour to improve interconnectivity, energy security, and sustainability using existing power linkages.”
“This opens up chances for the area to tap into low-carbon and renewable energy sources, contributing to economic development and boosting energy security and stability.”
The LTMS-PIP is one of the trials being conducted by the EMA as part of the country’s target of importing up to four gigatonnes of low-carbon power by 2035, which will account for about 30% of Singapore’s electricity supply in that year.
“The start of power imports from Lao PDR is a big step forward in our regional energy cooperation. The LTMS-PIP is a critical initiative for advancing multilateral power trading in Southeast Asia, supplementing existing efforts to realise the ASEAN Power Grid vision”Ngiam Shih Chun, the EMA’s chief executive, stated.
“Interconnected power grids can hasten the deployment of renewable energy, boost supply diversification, and improve grid stability across the area. We’d like to thank our regional partners for their strong support and close engagement in advancing the area toward a greener energy future.”
According to the joint statement, the project also highlights the possibility of international power collaboration, since technical, commercial, legal, and regulatory arrangements were finalised among diverse partners with the backing of the governments of the four ASEAN nations.
Keppel Electric and EDL will continue to collaborate closely with Thailand’s Electricity Generating Authority and Malaysia’s Tenaga Nasional Berhad to ensure the effective deployment of the power supply, according to the company.
Daovong Phonekeo, the Laotian Minister of Energy and Mines, stated that Laos sees itself as a significant contributor to renewable energy in the area.
“We continue to support the implementation of the ASEAN Economic Community, Greater Mekong Subregion, and ASEAN Power Grid, and this project demonstrates that we are on the proper path as we encourage the growth of clean energy resources such as solar and wind power.”
The LTMS-PIP began in 2014 as part of the ASEAN Energy Track to supplement the ASEAN Economic Community and ASEAN Power Grid in order to integrate the region for energy security and stability, according to EDL managing director Chanthaboun Soukaloun.
“We believe that this initiative is only the beginning of a new age in which distance is no longer an impediment but rather a challenge that may push our capabilities to new heights.”
Keppel and EDL are also working together to provide renewable energy tracking, verification, and assurance through Renewable Energy Certificates and other long-term renewable electricity supplies.
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