As economies around the world recover from COVID-19 pandemic disruptions, countries have been doubling down to accelerate the energy transition and achieve sustainability commitments. For Indonesia, energy transition has become a priority issue, as the country stated in COP 26 that it is committed to achieving net zero emissions (NZE) by 2060. The transition to renewable energy is pivotal in achieving this target. As part of the transition to renewable energy, Indonesia needs to develop its renewable energy capacity, from the manufacturing of renewable energy equipment to its generation, distribution and transmission.

For that reason, Singapore's Energy Market Authority (EMA) has set a target to import 4GW of low-carbon electricity by 2035. Moreover, Singapore's energy regulator has provided conditional approval to import 2GW of clean energy from Indonesia, with five projects in the pipeline.Among the companies who will manage the five projects are Pacific Medco Solar Pte Ltd, Adaro Solar International Pte Ltd, EDP Renewables APAC, Vanda RE Pte Ltd, and Keppel Energy.

The EMA’s offer is a valuable opportunity to jumpstart Indonesia’s entry to both the massive production as well as exports of renewable energy. This project justifies new investment into not only the generation of renewable energy but more importantly the manufacturing of solar panels and the battery energy storage systems (BESS) in the country. Furthermore, new (subsea) transmission infrastructure will need to be constructed to facilitate the electricity exports to Singapore. All of these could potentially act as a foundation for the country’s future development of variable renewable energy, including its supply chains – too big an opportunity for the country to miss. In total, this renewable energy export project is estimated to be valued at US$ 15 billion in investment.

As the world’s biggest investor in renewable energy, especially solar energy, China shall see  this renewable energy export as a relevant investment opportunity for Chinese RE players. China accounts for almost half of the total US$ 358 billion spent on renewable energy. Similarly, China is also one of the largest source of foreign investment for Indonesia’s solar energy. China is already involved in Indonesia’s own flagship project for solar energy generation, the Cirata floating photovoltaic (PV) power generation project, a floating solar that generates 300,000 megawatt-hours (MWh) of clean energy annually, with PowerChina as the EPC contractor for the project. Also, China’s Trina Solar, in partnership with Sinar Mas of Indonesia, plans to invest US$100 million to build in the manufacturing facilities of the first integrated solar cell and solar modules in Kendal, Central Java. Thus, Indonesia’s renewable energy export to Singapore shall attract more investors and financiers from China to invest in solar panels and BESS as well as EPC contractors for the projects.

Looking at the renewable energy (RE) investment opportunities offered by Indonesia’s RE export to Singapore, the Embassy of the Republic of Indonesia to the People’s Republic of China and Mongolia, in partnership with Tenggara Strategics and CSIS will host the China RE Invest Indonesia in 2024, to update the Chinese investors and financiers on the latest development of Indonesia’s renewable energy and electricity policy, including on RE exports to Singapore and the opportunities available for Chinese investors and financiers, and connect RE investors and financiers from China with project owners in Indonesia, to help Indonesia realize its ambitious RE export to Singapore.