Singapore’s dense population and land scarcity make regional grids a necessity for its clean energy transition. (Photo: iStock)
Taiwan, surrounded by water on all sides, operates an islanded power grid with no connections to neighboring countries. In the event of an energy crisis, it has no external support to fall back on. As a result, effective power management by the state-run utility Taipower has become essential. Yet as countries across the world deepen cross-border electricity cooperation to accelerate decarbonization, regional power grids are emerging as a major trend—one Taiwan can no longer afford to overlook.
In our special series Rewiring Asia, RECCESSARY explores regional grid developments around the world and assesses their relevance and feasibility for Taiwan, analyzing the key opportunities and challenges on the road ahead.
When Taiwan’s Minister of Economic Affairs Kuo Chih-hui (郭智輝) floated the idea of building a power plant in the Philippines and transmitting green electricity back to Taiwan via subsea cables, it ignited intense debate at home. But further south, Singapore—a densely populated, resource-constrained city-state—has long recognized the strategic value of regional grid integration. Its early push for cross-border electricity trade is now providing crucial momentum for renewable energy growth across Southeast Asia.
How did Singapore get ahead in this space? And what hurdles remain?
95% gas reliance pushes Singapore to diversify through grids
Singapore relies heavily on natural gas, which accounts for 95% of its electricity generation. Energy-related emissions represent 36.5% of the country's total carbon footprint, second only to the manufacturing sector. To meet growing electricity demand while staying on track for net-zero emissions by 2050, Singapore must shift toward cleaner energy sources.
Singapore’s carbon emissions breakdown in 2022. (Source: National Climate Change Secretariat)
Yet local renewables alone aren’t enough. Even if Singapore hits its ambitious goal of 8.6 GW of solar power capacity by 2050, it would only meet 12% of national demand—highlighting the urgency of renewable energy imports.
In its Charting the Energy Transition to 2050 blueprint, the Singapore government designates regional power grids and electricity imports as one of four key pillars of its energy strategy. With regional power trading already in motion in the EU and North America, other ASEAN countries are increasingly exploring cross-border electricity flows as well.
Compared to gas imports, cross-border green electricity offers greater flexibility, lower generation costs, and improved system resilience. It also catalyzes regional investment in renewables, boosting both decarbonization and economic cooperation.
According to Dr. Yao Lixia, Senior Research Fellow at the Energy Studies Institute, National University of Singapore, the country’s energy transition hinges on how fast ASEAN neighbors adopt clean power. "Singapore can leverage its financial and research advantages to ensure energy security through regional cooperation on renewables and grid infrastructure,” she notes.
Singapore scales up renewable imports through landmark ASEAN deals
Singapore began shifting from oil to gas generation in the 1990s. While most natural gas is still imported, the country only started importing renewable electricity through the Lao PDR–Thailand–Malaysia–Singapore Power Integration Project (LTMS-PIP) in June 2022, which marked the region’s first functioning multilateral green power agreement.
Under this deal, Singapore's Keppel Electric signed a two-year agreement with Électricité du Laos to purchase 100 MW of hydropower delivered through Thai and Malaysian grid networks. The project is considered a stepping stone for the broader ASEAN Power Grid (APG), paving the way for deeper bilateral electricity trade across Southeast Asia.
To date, Singapore has conditionally approved 10 low-carbon power import proposals from Cambodia, Indonesia, Vietnam, and Australia. Five of these have progressed to conditional licensing but none have yet received final importer licenses—which requires, among other things, confirmed project financing.
Singapore aims to import 6 GW of low-carbon electricity by 2035, mainly from Indonesia and Australia. (Source: EMA)
Indonesia is the leading source of approved imports. All five conditionally licensed projects originate from Indonesia, focused on solar power with a total capacity of 2 GW and expected to go online by 2028. Two additional Indonesian proposals totaling 1.4 GW have received conditional approval, though the countries’ power grids are not yet connected.
Singapore is also eyeing Australia. The Australia-Asia PowerLink, developed by Sun Cable and granted conditional approval in October 2024, would lay a record-breaking 4,300-kilometer subsea cable through Indonesia to deliver Australian solar power. The project complements APG efforts by adding diversified supply.
With over 20 letters of intent submitted by potential power exporters, Singapore has raised its import goal by 50%, now targeting 6 GW of low-carbon electricity by 2035. This would supply one-third of Singapore’s electricity needs, supporting long-term growth and energy security.
Transmission loopholes could boost fossil power instead
Unlike Europe’s mature interconnected power systems, ASEAN’s transnational grid development has been slower, hampered by political and cultural differences that drive countries toward energy self-sufficiency. Diverse levels of grid development further complicate integration.
Although this mindset is slowly changing, the emergence of regional grids does not guarantee increased green electricity trade. For instance, Thailand and Malaysia reportedly declined to extend their role in the LTMS-PIP, citing challenges like limited volumes, transmission fees, and local green power shortages. Because transmission isn’t limited to renewables, there’s a risk that fossil-based electricity could flood the grid.
According to energy think tank Ember, mobilizing finance for grid upgrades and clean energy projects is essential to Singapore’s sustainability goals. Investment, however, depends on resolving regulatory hurdles and market uncertainties including high interest rates and a lack of bankable proposals.
Grid infrastructure doesn’t guarantee green electricity—fossil power may still be transmitted. (Photo: iStock)
Singapore pushes ASEAN forward with demand-driven leadership
Singapore’s government is championing regional grid interconnection to meet its surging low-carbon energy needs. Domestic sustainability policies now require companies to verify carbon reductions, reinforcing the case for grid-based power decarbonization.
Energy Market Authority (EMA) CEO Puah Kok Keong has noted that Singapore's higher electricity prices make the public more receptive to imported green energy. Compared to costly emerging decarbonization tools like carbon capture, cross-border renewables may offer a more affordable path to grid decarbonization.
As Puah explains, successful grid integration would spark a virtuous cycle of renewable investment, tech sales such as solar panels and batteries, and manufacturing growth across Southeast Asia—while reinforcing the grid backbone. According to the International Energy Agency (IEA), ASEAN nations must invest US$200 billion in grid upgrades by 2030.
Given Singapore’s policy maturity and regional standing, it is well-positioned to lead ASEAN’s energy transition. Connecting regional grids will be central to that mission.
Sources: NCCS, The Straits Times (1), (2), (3), EMBER, EMA, Asian Power, Fulcrum
'Rewiring Asia' special series
- Rewiring Asia: How global and ASEAN grids inform Taiwan’s next move
- Rewiring Asia: Inside Singapore’s strategy to build a regional grid for clean power
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