Singapore and Indonesia have joined hands to pave the way for renewable energy projects. A Memorandum of Understanding (MOU) on Renewable Energy Cooperation has been signed between the two nations with the intention of establishing a cooperative institutional framework for the growth of renewable energy manufacturing industries in Indonesia and cross-border electricity trading projects between Singapore and Indonesia.
Establishing a Cooperative Institutional Framework
Under the MOU, both countries will make it easier for investors to help build up renewable energy manufacturing industries in both the upstream and downstream parts of Indonesia. This will include the development of solar Battery Energy Storage Systems (BESS) and photovoltaics (PV). Leveraging investments for electricity export projects to Singapore is also part of the agreement. With the development of these industries, the goal is to enhance Indonesia’s renewable energy capabilities while facilitating the growth of Singapore’s energy sector.
Building solar farms and battery energy storage systems
The collaboration between the two nations will also focus on developing solar farms and BESS that can supply renewable energy to Indonesia. These facilities will also enable energy exports between the two countries. With this, both nations aim to reduce their reliance on non-renewable energy sources and shift towards a sustainable energy future.
Facilitating cross-border electricity trading
The MOU also has plans for building frameworks and transmission infrastructure that will make it easier for Singapore and Indonesia to trade electricity across borders. By working together, the two countries hope to increase the use of renewable energy in the area and help the economy grow.
Also read: Singapore Banks Borrowing Appetite Likely To Moderate In 2023, Says S&P Global Ratings
The fact that Singapore and Indonesia are working together on renewable energy projects is a big step towards clean energy in the region. This partnership will not only help Indonesia’s clean energy businesses grow, but it will also help Singapore improve its energy sector. Solar farms and BESS will help reduce the region’s reliance on nonrenewable energy sources. Cross-border electricity trading will allow both countries to use each other’s energy resources. The MOU is a testament to the commitment of both nations towards achieving a sustainable energy future.