Asian Development Bank (ADB) and the Singapore Energy Market Authority (EMA) signed a memorandum of understanding (MoU) on July 11, in order to develop renewable energy production and transmission in Southeast Asia while supporting the establishment of ASEAN power grid.
The collaboration will involve sharing expertise and best practices in areas such as regional partnerships, public-private partnerships, project structuring and funding. The MoU also authorizes ADB to utilize its products and services to assist ASEAN countries and sponsors in implementing green energy projects in the region and managing the risks associated with these projects.
According to ADB East Asia, Southeast Asia and Pacific branch Vice President Ahmed M. Saeed, the energy transition requires effective cooperation within ASEAN and various funding sources.
Ngiam Shih Chun, CEO of EMA, added that the partnership will combine the expertise and resources of EMA and ADB to further expand the potential of low-carbon electricity to power Southeast Asia, while promoting carbon reduction in Singapore's power sector through the importation of low-carbon electricity.
ADB has launched a goal of subsidizing USD 100 billion by 2030 to fund Southeast Asia’s transition to a low-carbon economy and tackle climate change.
In October 2021, EMA released a plan to import up to 4 GW of low-carbon electricity by 2035, which account for 30% of Singapore's total capacity, as part of its energy sector net zero plan. The scheme attracted more than 20 proposals from six countries, offering a total of more than 10 GW of imported capacity.
Singapore has also signed numerous energy cooperation agreements with suppliers such as Australia, Cambodia, Indonesia, Laos and Vietnam to explore the potential of these countries in exporting electricity to Singapore.
