Singapore, Australia to build the world's longest undersea cable. (Photo: Sun Cable)
On October 22, the Singapore government announced the conditional approval for the import of low-carbon energy from Australia, giving the green light to a 4,300-kilometer undersea cable project connecting the two countries. This confirmation highlights the project's technical and commercial viability, with operations expected to begin as early as 2035.
Undersea cable aims to set world’s record
The Energy Market Authority (EMA) of Singapore, responsible for the review, stated that developers must update their proposals to formally obtain conditional approval and enter the development phase. This includes presenting a commercially viable and customer-acceptable pricing structure, as well as securing approvals from the countries through which the cable will pass, including Indonesia's waters.
The project was initially proposed by Australia's Sun Cable in 2019, but it was restarted after the company underwent restructuring. The plan involves constructing a large-scale solar power plant in northern Australia to export some of its electricity to Singapore. If completed, the cable, costing approximately $13.5 billion, will set a record for the longest undersea cable in the world.
Mitesh Patel, CEO of Sun Cable, noted that Australia ranks in the top five globally for solar resources and, under stable and resilient grid conditions, can provide uninterrupted renewable energy. He expressed confidence in offering competitive pricing but acknowledged that electricity prices would be influenced by various factors.
Patel also revealed that the company is already seeking buyers in Singapore and has begun signing long-term power purchase agreements, targeting large technology firms and pharmaceutical companies.
Sun Cable's CEO stated that Australia's solar resources rank in the top 5 globally, expressing confidence in offering competitive pricing. (Photo: Sun Cable)
Australia to supply 1.75 GW of green energy to Singapore
Electricity-related carbon emissions account for 40% of Singapore's total carbon emissions, making the import of low-carbon electricity a crucial part of the country’s decarbonization strategy. Singapore aims to import 6 GW by 2035, which will represent 30% of its total electricity demand. The EMA has already signed agreements for low-carbon electricity imports with Indonesia, Cambodia, and Vietnam, totaling 5.6 GW. After accounting for transmission losses, the anticipated import scale from Australia is expected to be 1.75 GW.
In addition to exporting renewable energy to Singapore, Sun Cable’s development plan includes supplying 4 GW of electricity to Darwin and integrating wind power and battery storage to meet round-the-clock green energy needs, supporting the development of hydrogen energy, e-fuels, and other green industries.
Sun Cable stated that the project is expected to create thousands of jobs in the Northern Territory and generate an economic value of AUD 20 billion (about USD 13.4 billion).
Source: Bloomberg、The Straits Times、Sun Cable、EMA
