On 22 October 2024, the Energy Market Authority (“EMA“) announced that the Ministry of Trade and Industry, EMA and the United States Department of Energy will commence the second phase of the United States-Singapore Feasibility Study on Regional Energy Connectivity (“Study“) through the Net Zero World Initiative.
For background, on 3 April 2023, Singapore and the United States (“US“) commenced the first phase of the Study, which examined the renewable energy landscape and existing grid infrastructure of Association of Southeast Asian (“ASEAN“) countries, regional sub-sea interconnections, and the socioeconomic impact of regional connectivity. Preliminary findings highlighted the benefits to the region offered by sub-sea interconnections, including emissions reduction, lowering of generation capital and production costs, and increased renewable energy deployment. There are also regional economic benefits, including investment opportunities and the creation of green jobs. Our Legal Update titled “Singapore and US Regulators Release Initial Findings from First Phase of Feasibility Study on Regional Energy Connectivity” provides more information on the Study’s first phase.
The second phase of the Study, titled “Study on Legal and Financing Frameworks for Regional Energy Connectivity in Southeast Asia”, will cover the legal and governance frameworks and financing arrangements required to facilitate regional energy connectivity in ASEAN countries. A Workgroup will be established, which will be coordinated by Singapore and the US, and will allow for the Study to involve more regional countries and multilateral partners. The Workgroup will enable partners to contribute towards the development of the ASEAN Power Grid initiative, and further support regional endeavours to use renewable energy and collectively decarbonise the energy sector. Additionally, the second phase of the Study will allow the region to collaboratively mould discussions on cross-border electricity trading projects within ASEAN.
In our view, the second phase of the Study will be important in identifying the legal and financing challenges to the Regional Energy Connectivity and ASEAN Power Grid, and hopefully pave the way to addressing these challenges and reduce the hurdles for the projects comprising the ASEAN Power Grid.
Click on the following link for more information:
- EMA Media Release titled “The United States-Singapore Feasibility Study on Regional Energy Connectivity” (available on the EMA website at ema.gov.sg)
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