A consortium comprising Sembcorp Industries’ wholly-owned subsidiary, Sembcorp Utilities, and Sarawak Energy Berhad (SEB), has been granted conditional approval by the Energy Market Authority (EMA) of Singapore to import around 1GW of renewable energy from Sarawak to Singapore.
The project, which is Singapore’s first large-scale 24/7 power import initiative, is likely to begin operations in 2035. It will import electricity generated mainly from hydropower sources in Sarawak. These sources are expected to receive sustainability certification under the Hydropower Sustainability Standard. The electricity will be transmitted to Singapore through 700km-long subsea cables. SP PowerInterconnect will provide technical support.
As at Oct 17, the consortium has signed a preferred supplier agreement with leading high-voltage submarine and underground cable systems provider, Prysmian, to work on the design, installation methodology and protection requirements.
The conditional approval was commemorated with ceremonies in Singapore and Kuala Lumpur. Singapore’s deputy prime minister and Minister for Trade and Industry, Gan Kim Yong and Sarawak premier, YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Bin Tun Datuk Abang Haji Openg, witnessed the ceremony in Singapore. The ceremony in Kuala Lumpur was held at the sidelines of the 43rd Asean Ministers on Energy Meeting and was witnessed by Malaysia’s deputy prime minister and Minister for Energy Transition and Water Transformation, YAB Datuk Amar Haji Fadillah bin Haji Yusof, and Singapore’s Minister-in-charge of Energy and Science & Technology in the Ministry of Trade and Industry, Dr Tan See Leng.
The conditional approval brings Sembcorp closer to achieving 2.2GW of imports and contributing to Singapore’s 6GW target by 2035, says Sembcorp’s group CEO Wong Kim Yin.
The award is not expected to have a material impact on Sembcorp’s earnings per share (EPS) and net tangible asset (NTA) per share for the FY2025 ending Dec 31.
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As at 3.22pm, shares in Sembcorp are trading 7 cents lower or 1.11% down at $6.24.
