Singapore began receiving hydropower from Laos wired through Thailand and Malaysia on Thursday, the city-state’s first renewable electricity imports as it looks beyond its borders to meet climate change goals.
Singapore is receiving up to 100 megawatts, the Energy Market Authority said in a press release, or enough for a little more than 1% of peak demand. The land-starved country hopes it's the first step to expanding low-carbon power imports to as much as 4,000 megawatts by 2035, or about 30% of its needs.
The electricity is being generated by Electricite du Laos hydropower dams and sent through existing grid interconnections across Thailand and Malaysia. Keppel Electric Pte signed a two-year power purchase agreement and received the first electricity importer license issued by Singapore’s EMA.
For Laos, the power sale comes as the country faces dwindling cash reserves and surging inflation, threatening a debt crunch for the nation of 7.5 million. The deal also helps Singapore receive clean power through its connection with Malaysia after that country last year banned exports of renewable energy.