Singapore and Vietnam have taken a significant step towards regional energy integration by signing a Letter of Intent (LOI) to enhance collaboration in cross-border electricity trade. The agreement aims to facilitate the import of approximately 2GW of low-carbon electricity into Singapore by 2035, reinforcing both nations’ commitment to sustainable energy solutions.
The announcement builds on the Conditional Approval granted by the Energy Market Authority of Singapore in October 2023, which allows Sembcorp Utilities to import 1.2GW of low-carbon electricity via new subsea cables spanning around 1,000 kilometers from Vietnam to Singapore.
“The Vietnam and Singapore governments will continue to engage interested companies with credible and commercially viable proposals,” stated Singapore’s Ministry of Trade and Industry (MTI).
Under the LOI, both countries reaffirmed their commitment to developing a sustainable, inclusive, and resilient ASEAN Power Grid. This initiative aims to establish a network of energy interconnections similar to those in other global regions, fostering multilateral and multidirectional cross-border electricity trade while strengthening energy security across ASEAN.
The latest agreement builds on previous collaborations, including the 2022 Memorandum of Understanding on energy cooperation and the recently endorsed joint report on offshore wind power trade between Singapore and Vietnam.
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