Cambodia is slated to start selling renewable electricity to Singapore in a landmark deal that will see 1,000 MW of power exported to the Lion City.

On March 15, at Singapore’s Fullerton Hotel, Royal Group Power Company (RGP) and Keppel Energy (KE) signed a Power Purchase Agreement (PPA) in Singapore for the sale and export of 1,000 MW - the equivalent of 1 GW - of renewable energy generated in Cambodia to Singapore.

The move cements earlier agreements between the two companies to pursue the joint development and operation of selected renewable energy projects in Cambodia, with the aim of exporting renewable energy to Singapore through a submarine high-voltage transmission, where KE will be the off-taker.

The official signing of the PPA was attended by high-ranking government officials from Cambodia and Singapore. These included Suy Sem, Minister of the Ministry of Mines and Energy, Keo Rottanak, Managing Director of Electricité du Cambodge, and Yim Viseth, the Chairman of the Electricity Authority Cambodia.

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At the signing ceremony, Sem said: “As a strategic project it will serve to support power trade and power integration amongst ASEAN member states, including Cambodia and Singapore, and is in line with the Master Plan on ASEAN Connectivity. I hope our two sides will continue our commitment to deepening our partnership and will unlock more investment opportunities towards a carbon neutral future while strengthening energy security and reducing carbon emissions while also realizing the vision of the ASEAN Power Grid.”

According to a media release announcing the signing, KE’s large-scale electricity import is expected to aggregate low-carbon electricity from various renewable energy sources in Cambodia. In addition, there is the option to scale up generation due to Laos’ abundance of renewable energy.

The power will be transmitted from Cambodia to Singapore through onshore overhead high voltage transmission lines and subsea high voltage transmission cables. The low carbon electricity will be generated and supplied from an integrated energy system of more than 5 GW of installed hydro and solar, with wind stated as a future potential. It will also be supported by energy storage systems, such as pumped hydro storage or batteries.

Kith Meng, Chairman of RGP, said at the opening ceremony, “KE and the Royal Group have chosen to act bilaterally to accelerate our efforts to contribute to the sustained economic growth of our respective home countries by not only fueling economic growth but also by moving away from carbon-dependent electricity.

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“As such, our success will not only benefit our two companies and our two countries, but will also foster integration in the power sector of the ASEAN Community. At the same time, the implementation of our PPA will also help to facilitate national, ASEAN Community, and global efforts to meet long-term, net-zero emission targets.”

Singapore’s Minister for Manpower and Second Minister For Trade And Industry, Tan See Leng, said the move helps the two nations meet the target of net-zero emissions by 2050. “Energy collaborations across borders can help to realize our region’s potential for collective decarbonisation by unlocking renewable energy potential, and economic growth by stimulating clean energy investment flows and generating new green jobs,” he added.

Meanwhile, KI CEO, Cindy Lim, noted that the multilateral electricity deal will help power Singapore, which, as a small island nation, is at an energy disadvantage, into the long-term future by providing commercial and industrial customers with a reliable electricity supply.

“This strategic and innovative project will catalyze the regional power grid and accelerate renewable energy growth in ASEAN, as well as bolster the region’s energy resilience,” she said.

marissa.carruthers@kiripost.com