Approval Process and Project Realisation Timelines for Low-carbon Electricity Imports Approved by Energy Market Authority
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the assessment and realization timelines for low-carbon electricity imports, with Mr Victor Lye inquiring about project delivery likelihood and contingency measures for potential delays. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong explained that developers must secure regulatory approvals, financing, and meet technical milestones to commence operations by the end of the decade. He noted that the Government is concurrently pursuing other decarbonization pathways, including domestic solar deployment and research into hydrogen, advanced geothermal, and nuclear energy. Efforts also include sourcing high-quality carbon credits and promoting energy efficiency to manage the energy transition. To ensure energy security, Singapore is constructing a second Liquefied Natural Gas terminal, scheduled to be ready by 2030.
Transcript
34 Mr Victor Lye asked the Deputy Prime Minister and Minister for Trade and Industry regarding the low-carbon electricity imports approved by the Energy Market Authority (a) how is the delivery likelihood of each approved project assessed; (b) what are the assessed proportion of approved projects that will materialise and the expected timelines; and (c) what are the contingency measures to address any delay or non-realisation of a significant share of announced imports.
Mr Gan Kim Yong: For an electricity import project to commence operations, the project developer would need to: (a) secure regulatory approvals from relevant jurisdictions; (b) conclude power purchase agreements with buyers; and (c) secure sufficient financing. The project must also reach development milestones, such as the completion of subsea surveys and fulfil the Energy Market Authority's (EMA's) technical requirements, to be considered for an Importer Licence.
If the developer can meet these milestones and requirements within the next one to two years, they could begin commercial operations by the end of this decade.
EMA will continue to engage all companies with credible proposals that can contribute to Singapore's decarbonisation.
Beyond electricity imports, the Government is pursuing other pathways to decarbonise. We are maximising domestic solar deployment and actively building our capabilities to assess the potential of low-carbon energy sources, such as hydrogen, advanced geothermal and nuclear energy. There are also other ongoing efforts beyond decarbonising our energy mix, including sourcing high quality carbon credits and encouraging energy efficiency measures. As part of our strategy to meet a projected increase in electricity demand in the future, we have also invested in building a second Liquefied Natural Gas terminal, which will be ready by 2030.