Singapore's Regional Grid Plans Could Unlock $40B In Renewable Energy, Says Rystad Energy

2025-06-06 09:05:37

(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 7. Singapore is accelerating its transition from natural gas dependence to a regional electricity grid interconnected by subsea cables, according to new research from Rystad Energy, Trend reports.

This strategic shift aims to support decarbonization efforts and reduce the country's exposure to volatile global gas prices by enabling cross-border electricity trade.

If all proposed interconnections materialize, Rystad estimates the regional grid could facilitate up to 25 GW of renewable and energy storage projects, including hydropower, solar, and offshore wind, worth over $40 billion across Southeast Asia. Singapore, already reliant on gas for 96% of its power, is well-positioned to become a green power hub by importing cleaner energy from neighboring countries.

The report highlights potential emissions reductions of up to 13 million tons of CO2 equivalent annually if the full grid is developed. Beyond environmental benefits, the expanded regional network would improve Singapore's energy resilience by diversifying its supply sources and enhancing grid reliability.

However, Rystad notes that realizing these benefits requires strong cooperation with supplier countries, which may not see immediate gains from interconnection. Singapore's financial resources and reputation as a stable partner could be key to unlocking infrastructure investments in neighboring markets like Malaysia, Cambodia, and Vietnam.

Rystad also points to lessons from recent blackouts in Europe, emphasizing that grid resilience is essential. By deepening regional integration and tapping into renewable resources, Singapore can help build a more stable and secure power system.

The study further suggests that electricity imports via ASEAN interconnectors could offer a more cost-effective alternative to expanding Singapore's domestic gas-fired power plants. Hybrid solar-plus-storage systems, supported by optimized battery configurations, can meet Singapore's reliability standards while potentially delivering lower costs than previously expected.

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