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Singapore is aiming to enhance its imports of renewable energy by pursuing large-scale solar and hydroelectric projects elsewhere due to a notable surge in energy demand primarily from data centers. The city-state has declared its intention to fulfill its increasing electricity demands and support its ambitious climate goals by sourcing hydropower from Malaysia’s Sarawak region and solar power from Australia.
Australia said on August 21, that it has approved a $20 billion (US$13.5 billion) solar project that will use a 4,300 km undersea cable to transport energy from a massive solar farm in the nation’s north to Singapore. The project must not interfere with the habitat of greater bilby, which are small marsupials that resemble rabbits and have large, floppy ears.
The project is designed to supply large-scale industrial clients in Darwin, the capital city of Australia’s Northern Territory, and Singapore with up to 6 gigawatts (GW) of green electricity over the course of two development stages. This project is in line with Singapore’s plan to reach net-zero emissions by 2050 and peak carbon emissions by 2030. Singapore has also given conditional approvals for the import of renewable energy from Cambodia, Indonesia, and Vietnam, which includes a combination of solar, wind, and hydropower. At the moment, Singapore does not have the necessary conditions to produce wind or large-scale solar energy locally.
The need for external renewable energy sources grows as Singapore’s energy demand is predicted to expand dramatically, especially due to data centers, which are forecast to account for 12% of the city’s electricity use by 2030. The fact that data centers now use 7% of Singapore’s electricity shows how urgent these import plans are.
As part of a larger initiative to diversify its energy sources, Singapore is using hydropower from the rainforests of Sarawak, Malaysia. Long transmission lengths, energy losses, and regional rivalry present obstacles for the concept, though. The project will need permission from a number of parties, including the Indonesian government, the Australian Indigenous groups, and Singapore’s energy authorities.
Experts emphasize that diversifying energy sources is essential for ensuring energy security and could inspire broader regional renewable energy initiatives. Singapore’s approach reflects a global trend of increasing international energy trade to meet domestic renewable energy goals and could accelerate the clean energy transition in Southeast Asia.