Impact of Malaysia’s Renewable Energy Exports Ban on Singapore's Energy Security Strategies
Ministry of Trade and IndustrySpeakers
Summary
This question concerns whether Malaysia’s renewable energy export ban restricts Singapore from importing power from other regional nations and if joint energy projects are under discussion. Minister for Trade and Industry Gan Kim Yong clarified that the ban does not prevent the transit of electricity from other countries through Malaysia to Singapore. He cited the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, which imports 100 megawatts of renewable hydropower, as a successful pathfinder for the ASEAN Power Grid. This project aims to encourage regional investment and create opportunities for multilateral electricity trading to support the collective energy transition. Minister for Trade and Industry Gan Kim Yong added that Singapore is pursuing collaborative discussions with Malaysia and other partners to develop renewable energy resources and advance mutual interests.
Transcript
51 Mr Dennis Tan Lip Fong asked the Minister for Trade and Industry (a) whether Malaysia’s ban on renewable energy exports will prevent Singapore from importing renewable energy from other countries in the region like Thailand and Laos through existing powerlines in Malaysia; and (b) whether Singapore is in talks with Malaysia to consider joint renewable energy projects that will help secure energy supplies.
Mr Gan Kim Yong: Malaysia and Singapore have been working closely at bilateral and multilateral platforms on our decarbonisation efforts. Malaysia’s decision to disallow the export of renewable energy to Singapore does not extend to the passage of electricity from other countries, through Malaysia, to Singapore. The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project or the LTMS-PIP, which commenced on 23 June 2022, is one such example. Under the LTMS-PIP, we are importing up to 100 megawatts (MW) of renewable hydropower from Lao PDR through Thailand and Malaysia via existing interconnections for a two-year period. The Project serves as a pathfinder to complement efforts on the ASEAN Power Grid by creating opportunities for multilateral electricity trading. We look forward to the continued success of the Project, which reaffirms and deepens the strong energy cooperation between the four countries.
We believe that collaboration with regional partners to develop renewable energy resources and advance cross-border electricity trade is a win-win proposition for all involved. There is significant benefit for all countries involved, as cross-border electricity trade will encourage investments in renewable energy production as it can serve a broader regional market. A collective regional and global effort is needed for the energy transition to be successful. We are having collaborative discussions with regional and global partners, including Malaysia, to advance our mutual and collective interests.