The Energy Market Authority (EMA) of Singapore plans to grant 30-year import licences to companies investing in low-carbon electricity projects. This decision is designed to help companies recover the significant upfront investments required for these developments.
The city-state is aiming to import 6 gigawatts (GW) of low-carbon electricity by 2035 and has conditionally approved 10 projects across Australia, Cambodia, Indonesia and Vietnam.
Puah Kok Keong, CEO of the EMA, said during Singapore International Energy Week that building the necessary infrastructure for these projects, including large solar farms and battery systems, would require substantial capital.
He emphasised that the cost of laying power cables to connect Singapore with other countries would further add to expenses.
Puah explained the rationale behind the long-term import licence, stating that the 30-year duration would provide companies the time needed to recover their investments.
"We understand the high upfront investment and the time needed to recover your investments," Puah said.
The EMA's move marks a significant step in Singapore's strategy to ensure a sustainable energy future.