Singapore’s Regional Power Play Could Unlock 25 GW of Renewable Energy and $40 Billion Investment

Singapore is emerging as a key player in Southeast Asia’s energy transition, with plans to tap into up to 25 gigawatts (GW) of renewable and energy storage capacity through regional interconnections. According to a new report from Rystad Energy, these cross-border electricity links—primarily via subsea cables—could unlock over $40 billion in investments across the region, involving solar, hydropower, and offshore wind projects.

Historically reliant on natural gas, which currently makes up 96% of its power mix, Singapore is pivoting towards a cleaner and more resilient energy model. By importing low-carbon electricity through an ASEAN-wide regional grid, the city-state could cut emissions by up to 13 million tonnes of CO₂ equivalent annually while reducing exposure to volatile global gas prices.

The proposed grid would connect Singapore to renewable-rich countries such as Malaysia (Sarawak), Cambodia, and Vietnam. These nations, with more abundant land and untapped renewable potential, could supply clean power to Singapore, which in turn offers capital and a stable business environment to drive the regional shift.

Hydropower projects in countries with long transmission corridors stand to benefit significantly, as increasing load factors helps spread transmission costs and improve capital efficiency. Similarly, solar-plus-storage systems—with optimized DC/AC configurations and well-sized battery energy storage systems (BESS)—are increasingly capable of reaching load factors above 90%, making them attractive for meeting Singapore’s regulatory target of a 60% minimum annual load factor for imports.

These hybrid systems, combining solar and BESS, can match the reliability of traditional power sources while delivering lower levelized costs of electricity (LCOEs) than many in the industry currently expect. This makes them well-suited to meet the technical and economic requirements set by Singapore’s Energy Market Authority (EMA).

The initiative also carries strategic implications for regional energy security. Recent blackouts in Europe highlight the risks of insufficient interconnection and storage capacity. By anchoring a resilient, renewables-powered regional grid, Singapore could not only safeguard its own energy future but also serve as a model for integrated clean energy cooperation in Asia.