BAKU, Azerbaijan, June 7. Singapore is
accelerating its transition from natural gas dependence to a
regional electricity grid interconnected by subsea cables,
according to new research from Rystad Energy, Trend reports.
This strategic shift aims to support decarbonization efforts and
reduce the country’s exposure to volatile global gas prices by
enabling cross-border electricity trade.
If all proposed interconnections materialize, Rystad estimates
the regional grid could facilitate up to 25 GW of renewable and
energy storage projects, including hydropower, solar, and offshore
wind, worth over $40 billion across Southeast Asia. Singapore,
already reliant on gas for 96% of its power, is well-positioned to
become a green power hub by importing cleaner energy from
neighboring countries.
The report highlights potential emissions reductions of up to 13
million tons of CO₂ equivalent annually if the full grid is
developed. Beyond environmental benefits, the expanded regional
network would improve Singapore’s energy resilience by diversifying
its supply sources and enhancing grid reliability.
However, Rystad notes that realizing these benefits requires
strong cooperation with supplier countries, which may not see
immediate gains from interconnection. Singapore’s financial
resources and reputation as a stable partner could be key to
unlocking infrastructure investments in neighboring markets like
Malaysia, Cambodia, and Vietnam.
Rystad also points to lessons from recent blackouts in Europe,
emphasizing that grid resilience is essential. By deepening
regional integration and tapping into renewable resources,
Singapore can help build a more stable and secure power system.
The study further suggests that electricity imports via ASEAN
interconnectors could offer a more cost-effective alternative to
expanding Singapore’s domestic gas-fired power plants. Hybrid
solar-plus-storage systems, supported by optimized battery
configurations, can meet Singapore’s reliability standards while
potentially delivering lower costs than previously expected.
