On 12 March 2025, Singapore and Vietnam endorsed the Joint Report on Offshore Wind Power Trade Cooperation between Vietnam and Singapore (“Joint Report“):
- facilitating regulatory approvals and licenses from both governments for renewable energy development and cross-border electricity trade (“CBET“);
- enabling deeper bilateral cooperation in infrastructure development, research, technology, and capacity-building; and
- affirming the shared commitment to work closely with other Association of Southeast Asian Nation (“ASEAN“) Member States to achieve the goal of realising the ASEAN Power Grid by 2045, including developing a framework and terms of reference for subsea power cables.
By way of context, both countries have increased their bilateral cooperation in renewable energy. The Energy Market Authority of Singapore (“EMA“) granted Conditional Approval to Sembcorp Utilities in October 2023 to import 1.2GW of low-carbon electricity from Vietnam (“Project“) via new subsea cables of around 1,000km from Vietnam to Singapore. The imported electricity will harness offshore wind power and potentially other forms of generation, developed with Petrovietnam Technical Services Corporation.
Building on the Joint Report and an earlier Memorandum of Understanding (MOU) on energy cooperation between Singapore and Vietnam in 2022, Singapore and Vietnam signed a Letter of Intent (“LOI“) to enhance cooperation in CBET for the ASEAN Power Grid on 26 March 2025 to:
- reaffirm both countries’ commitment to establishing a sustainable, inclusive, and resilient ASEAN Power Grid. This Grid will consist of multiple energy interconnections to advance ASEAN’s vision of multilateral and multidirectional cross-border power trade and enhanced energy security;
- explore ways to increase the targeted capacity of low-carbon electricity imports from Vietnam to Singapore to approximately 2GW by 2035, building on the capacity conditionally approved under the Project; and
- continue engagement with interested companies that have credible and commercially viable proposals.
In conclusion, the recent agreements between Singapore and Vietnam mark a significant step towards the import of low-carbon electricity from Vietnam to Singapore. The realisation of the Project will be ASEAN’s first offshore wind power trading initiative and will set a good precedent for future projects. There is strong momentum for the ASEAN Power Grid, and there are various opportunities, ranging from project development, project financing, subsea cable construction, sale of renewable energy credits and electricity trading.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
