Singapore Grants Conditional Approval for Sun Cable's Ambitious Low-Carbon Energy Import From Australia

Singapore grants Sun Cable conditional approval to import 1.75 GW of low-carbon electricity from Australia via the world’s largest solar farm.

Singapore has granted Sun Cable conditional approval to import 1.75 gigawatts (GW) of low-carbon electricity from Australia, marking a significant step towards reducing the city-state’s reliance on fossil fuels. The imported energy, sourced from solar power in Australia's Northern Territory, will be transmitted via 4,300 km subsea cables, according to the Energy Market Authority (EMA) on Tuesday (Oct 22).

Sun Cable’s Australia-Asia PowerLink: World’s Largest Solar Farm and Battery Storage

Sun Cable’s project, the Australia-Asia PowerLink, is set to become the world’s largest solar farm and battery storage infrastructure. Estimated at a cost of US$13.5 billion, the project aims to supply about 9% of Singapore’s total electricity needs, harnessing renewable energy through an ambitious network of solar power and advanced transmission technology.

The project involves transmitting electricity via subsea cables from Australia to Singapore, spanning over 4,300 km, through Indonesian waters. Once completed, this large-scale project is expected to significantly contribute to Singapore’s green energy transition.

Conditional Approval: A Step Towards Clean Energy for Singapore

The conditional approval granted by EMA recognizes the project's technical and commercial viability, based on the information submitted thus far. Sun Cable now needs to meet specific conditions to move the project forward, including compliance with EMA’s technical requirements and securing commercially viable pricing for customers.

The company must also obtain all necessary approvals from relevant jurisdictions, particularly countries through which the subsea cables will pass. This landmark project is expected to start after 2035.

A Complement to ASEAN’s Power Grid

Speaking at the Asia Clean Energy Summit, Singapore’s Second Minister for Trade and Industry Tan See Leng emphasized the ambitious nature of the project due to the vast distance between Australia and Singapore. He noted, “Time will be needed to develop it, and we expect it to come online only after 2035. But when completed, the project will be a meaningful complement to the ASEAN Power Grid and serve as an additional source of electricity for Singapore.”

Challenges and Future Prospects

This is not the first time Sun Cable has pursued the project. Originally scheduled to begin construction in 2024 and be operational by 2029, the company faced financial difficulties and entered voluntary administration in January 2023. However, the project was rescued by part-owner and Australian tech entrepreneur Mike Cannon-Brookes in May 2023, enabling Sun Cable to move forward with its ambitious vision for clean energy.

Singapore has yet to make any financial commitment to the project, but EMA’s conditional approval signals that the project could play a key role in the country’s future energy plans.