KUCHING - Malaysia’s Sarawak state aims to provide up to one gigawatt (GW) of renewable energy to Singapore by 2032, with negotiations to supply the electricity via submarine cables now at an advanced stage, according to Sarawak state energy unit Sarawak Energy Berhad (SEB).

The 1GW of energy, mainly in the form of hydropower, represents up to a quarter of Singapore’s low-carbon electricity import target by 2035.

Singapore aims to import 4GW of low-carbon electricity, including renewable energy, by 2035 to meet about 30 per cent of its power needs.

SEB is spearheading the negotiations with a consortium led by Singapore’s Sembcorp Industries. The parties are working towards a power exchange agreement, and are finalising the technical and commercial terms for the export of energy, said SEB group chief operating officer James Ung Sing Kwong.

The deal has been under negotiation for more than three years, he said.

Higher costs and power losses during transmission over the 700km distance to Singapore were not a concern because of new submarine cable technology, Mr Ung told The Straits Times in an exclusive interview on the sidelines of the Sustainability & Renewable Energy Forum (Saref 3.0) at the Borneo Convention Centre in Kuching, Sarawak, on Thursday.

Held on Wednesday and Thursday, the forum’s theme, “Regional Net Zero and Sustainable Communities, Renewable Energy Development and Interconnections”, focuses on regional net-zero initiatives, as well as green energy development and solutions.

Sarawak Premier Abang Johari Tun Openg told ST that high-voltage direct-current submarine cables minimise the volume and cost of transmission losses.

Mr Ung said: “The feasibility study (has been) completed and the findings of our technical studies on cables show this is workable. Commercial negotiations are ongoing, and we are working towards the power exchange agreement, which will be a two-way exchange of power between both countries as well.

“From the Sarawak side, we need to get sufficient power ready for Singapore, and we have to strengthen transmission lines on land to supply the energy. Singapore will be responsible to build the 700km submarine cables from Sarawak to the city-state to supply the energy, which could take around six to seven years.”

The final structure of the submarine cable company has not been finalised, but it would be led by a Singapore company, he added.

A similar power link already exists in Europe. The North Sea Link between Norway and Britain stretches more than 720km in the North Sea.

SEB, along with Sembcorp Industries and Singapore Power Group, have completed technical studies on the cables linking Borneo to Singapore, Tan Sri Abang Johari told the conference on Wednesday.

In separate e-mailed comments to ST, the Premier said: “The consortium will soon submit the necessary applications to conduct a marine survey to determine the final cable route, as well as issue tender documents to potential vendors for the undersea cables and converter stations.”

In response to queries from ST, the Energy Market Authority said it welcomes Sembcorp, SEB and Singapore Power Energy Investments International’s interest to export electricity to Singapore, and is in discussions on their proposal.

Mr Ung said Indonesia would also need to give its endorsement because the cables will be laid in Indonesian waters.

“I can tell you that all parties are committed to make exporting renewable energy to Singapore a reality,” he added.

The total installed capacity of Sarawak Energy’s large hydropower plants is 3,452MW.

Sarawak Energy’s first hydroelectric plant, the 108MW Batang Ai dam, was commissioned in 1985, followed by Bakun (2,400MW) in 2011 and Murum (944MW) in 2014.

Meanwhile, the Baleh hydroelectric project (1,285MW) is under construction and is expected to be commissioned by 2028.

Sarawak generates 75 per cent of its electricity from hydropower and aspires to become a regional renewable energy powerhouse.

The largest state of Malaysia provides electricity to Indonesia’s Kalimantan region and is also helping to build a hydroelectric plant in North Kalimantan.

Sembcorp Industries group president and CEO Wong Kim Yin said on Thursday that the company is working with SEB to bring hydropower to Singapore that will alleviate a big shortage of green energy in the Republic. 

He added that bilateral agreements with countries are the first step to achieving net-zero carbon emissions by 2030, before moving into multilateral agreements within the Asean region. 

“We should also invest in each other. Sembcorp will be very interested to invest in renewable infrastructure in Malaysia, Indonesia or even Vietnam. This will mean connecting via capital,” he said during a panel session at the Saref conference. 

Singapore is also looking to import green power via undersea cables from other places in the region, including a proposal to import 1GW of renewable energy yearly from Cambodia.

In March 2023, the Energy Market Authority said electricity retailer Keppel Energy had received conditional approval to import hydropower, solar and potentially wind power from Cambodia’s Royal Group Power Company via new subsea cables that will transmit the electricity over more than 1,000km.

Singapore-based Vena Energy is also aiming for a 2026 construction start for its 2GW solar and battery project on Indonesia’s Riau Islands, and is hoping to supply electricity to Singapore before 2030.

The project reflects the growing ambition and scale of green energy investments in the region.