Singapore partner with US and Vietnam to boost cross-border electricity trade

This will focus on knowledge sharing and capacity building amongst others. 

The Singapore Ministry of Trade and Industry (MTI), the US Department of Energy, and Vietnam Ministry of Industry and Trade have formed a team that will enhance cross-border electricity trade by attracting more renewable energy investments and studying the development of a regional subsea cable framework. 

“This is the first such multilateral workstream among the three countries in promoting regional power interconnectivity, with the aim to establish regulatory frameworks, infrastructure, and a supportive ecosystem,” the MTI said. 

The working group builds on the Vietnam-Singapore energy cooperation agreement signed in October 2022, and the ongoing Singapore-US feasibility study on regional energy connectivity aimed at accelerating the development of the ASEAN power grid.

Under the multilateral deal, Singapore, US, and Vietnam will work on knowledge sharing, capacity building, and achieving consensus in the region on subsea cable issues.

The group’s first meeting was recently held alongside the IPEF Clean Economy Investor Forum. It was led by Second Minister for Trade and Industry Tan See Leng, Vietnam Minister of Industry and Trade Nguyen Hong Dien, and US Department of Energy Director (Office of Asian Affairs) Kenneth Vincent. 

Meanwhile, the US International Development Finance Corporation said it is contributing an equity investment to the Southeast Asia Clean Energy Fund II (SEACEF), pending congressional notification.

This will allow the SEACEF to raise around $235.46m (US$175m) that will be invested in projects and companies that will accelerate the transition to a climate-resilient economy and increase energy security in Southeast Asia. 

“SEACEF’s investments will catalyse financing from other investors for projects in clean power, energy storage, energy efficiency, electric mobility, and grid infrastructure,” MTI said. 

US$1=S$1.35