Regional grid may unlock 25GW in renewables: report

The regional grid strategy aims not only to decarbonise Singapore’s power sector but also shield it from volatile global gas prices.

Up to 25 gigawatts (GW) of new renewable energy and storage capacity, backed by over $40b in investment, could be unlocked across Southeast Asia if Singapore succeeds in building a regional cross-border power grid, according to Rystad Energy.

The ambitious network of subsea cables and interconnections could deliver hydropower, solar, and offshore wind to Singapore, whilst potentially cutting carbon emissions by as much as 13 million tonnes of carbon emissions annually.

Singapore, long dependent on imported natural gas for 96% of its electricity needs, is now moving aggressively to diversify its energy mix. The regional grid strategy aims not only to decarbonise Singapore’s power sector but also to shield it from volatile global gas prices.

The plan would position Singapore as the core of a Southeast Asian green electricity hub, connecting the island-nation with resource-rich neighbours such as Malaysia, Cambodia, and Vietnam.

Rystad Energy’s analysis suggests that importing electricity via ASEAN interconnectors could deliver lower levelised costs of electricity compared to expanding Singapore’s domestic combined-cycle gas turbine capacity.

Increasing load factors, from the regulatory minimum of 60% to closer to 100%, would optimise transmission costs and maximise economies of scale, particularly for long-distance imports like hydropower.

The report also highlighted that solar-plus-storage hybrid systems are becoming increasingly viable. With optimised battery energy storage systems, these setups can achieve load factors above 90%, offering reliable, dispatchable power comparable to baseload generation.

Beyond cost savings and decarbonization, Rystad stressed the importance of energy security. The report warned that Southeast Asia must avoid the pitfalls seen in Europe’s Iberian Peninsula, where weak interconnections and limited grid storage have led to major blackouts.

Stronger regional integration and sufficient grid-connected storage will be critical to ensuring both resilience and stability for Singapore and its neighbors.