In a significant move towards promoting clean energy, the Asian Development Bank (ADB) and the Energy Market Authority (EMA) of Singapore have officially signed a memorandum of understanding (MoU). The agreement sets the stage for the development of renewable energy generation and transmission throughout the Association of Southeast Asian Nations (ASEAN) region, while also supporting the establishment of the ASEAN Power Grid. This collaboration will further accelerate Singapore’s efforts to decarbonize its power sector and facilitate clean electricity imports.
Under the terms of the MOU, both organizations will share their expertise and best practices in key areas such as regional cooperation, public-private partnerships, project structuring, and financing. Additionally, the agreement empowers the ADB to utilize its full suite of products and services to support ASEAN nations and project sponsors in implementing and managing the risks associated with clean energy projects across the region.
Ahmed M. Saeed, Vice-President for East and Southeast Asia and the Pacific at ADB, expressed the importance of collaboration stating, “The clean energy transition demands high-impact collaboration across ASEAN and a diverse range of financing sources. ADB is honored to partner with EMA in its effort to transform the energy landscape in ASEAN. Investing in clean energy not only puts us on a path to net zero, but it increases prospects for strong and sustainable growth.”
EMA Chief Executive Ngiam Shih Chun added, “This collaboration will combine the expertise and resources of EMA and ADB to further unlock the potential for low-carbon electricity to power the region, and boost efforts to decarbonize our power sector through imports of low-carbon electricity.”
Notably, Singapore’s Energy Market Authority announced in October 2021 its plan to import up to 4 gigawatts of low-carbon electricity, equivalent to 30% of its total supply, by 2035 as part of its comprehensive strategy to decarbonize the energy sector. As a result, Singapore has received more than 20 proposals from six countries during the ongoing request for the proposal exercise, offering a combined import capacity exceeding 10 gigawatts. Additionally, Singapore has entered into multiple energy collaboration agreements with source countries such as Australia, Cambodia, Indonesia, the Lao People’s Democratic Republic, and Vietnam, exploring the potential for electricity exports to Singapore.
In line with its commitment as Asia and the Pacific’s climate bank, ADB aims to deliver $100 billion in climate financing across the region from 2019 to 2030, supporting various initiatives that assist countries in transitioning to low-carbon economies and building resilience against climate change impacts.