EMA Grants Conditional Approval for Sun Cable’s Low-Carbon Electricity Import Project

The Energy Market Authority (EMA) has awarded Conditional Approval to Sun Cable (Singapore) Assets Pte Ltd for the import of 1.75 gigawatts (GW) of low-carbon electricity from Australia. This initiative aligns with Singapore’s long-term strategy to decarbonize its energy supply, aiming to significantly reduce carbon emissions in the power sector.

The electricity will be sourced from solar power harnessed in Australia’s Northern Territory and transmitted to Singapore through new subsea cables that span approximately 4,300 kilometers. The EMA’s approval indicates that the project has demonstrated technical and commercial viability based on the information submitted thus far.

As part of the approval process, Sun Cable must update its proposal to fulfill the EMA’s conditions precedent before it can be awarded a Conditional Licence. These conditions include compliance with EMA’s technical requirements and achieving a commercially viable pricing model acceptable to customers. Additionally, Sun Cable will need to obtain all necessary approvals from relevant jurisdictions, including those of countries through which the cables will be routed.

Low-carbon electricity imports are a critical component of Singapore’s strategy to decarbonize its power sector, which is responsible for 40% of the nation’s carbon emissions. The EMA aims to import around 6 GW of low-carbon electricity by 2035.

To date, the EMA has granted 2 GW of Conditional Licences for electricity imports from Indonesia and 3.6 GW of Conditional Approvals, which includes 1.4 GW from Indonesia, 1 GW from Cambodia, and 1.2 GW from Vietnam. If successfully realized, these projects will leverage a diverse mix of solar, hydropower, and wind energy, contributing to the development of the ASEAN Power Grid.

To meet growing energy demands, the EMA will continue to engage with companies presenting credible and commercially viable proposals that can assist in achieving Singapore’s net-zero ambitions by 2050. The authority will also explore various decarbonization pathways for the power sector, including hydrogen, solar energy, deep geothermal energy, nuclear energy, and carbon capture and storage technologies as part of the transition to a low-carbon future.