Singapore has given conditional approval for Sun Cable’s plan to import 1.75 gigawatts of solar power from the Northern Territory, a project valued at US$24 billion, which is scheduled to commence after 2035.

A preliminary assessment has determined that the Australia-Asia PowerLink project is technically and commercially viable, leading to a non-binding agreement between Singapore’s Energy Market Authority (EMA) and NT-based SunCable.

Interim SunCable International CEO Mitesh Patel thanked the EMA and the Singapore Government for their support.

“Obtaining Conditional Approval means SunCable can move forward with the next phase of development and commercial activities and strengthening our partnership with Indonesia,” Mr Patel said.

“We will also progress commercial discussions with industrial customers in Singapore and engagement with the Northern Territory Government and the Traditional Owners of the project site.

“We are seeking to supply up to 1.75 GW (15 per cent) of Singapore’s total electricity needs, and to critically diversify Singapore’s technology and import origin mix, which will improve the resilience of the country’s energy grid and help it achieve its Net Zero goals.”

The project will include the construction of a large solar farm in the Northern Territory, traversing through Darwin. The electricity generated will then be transmitted to Singapore through 4,300 kilometres of subsea cables.

In a statement, the EMA – a statutory board under the Singapore Trade and Industry Ministry – said the conditional approval allows SunCable to progress in developing the project to align with its anticipated commercial operation date, projected to be after 2035.

The statement said the conditional approval was in line with Singapore’s long-term strategy to decarbonise its energy supply.

SunCable’s next steps will include fulfilling the EMA’s technical requirements, obtaining a commercially viable price acceptable to customers, and acquiring necessary approvals from Australia, Indonesia, and Singapore.

The EMA has already established conditional license agreements with providers from Indonesia, Cambodia, and Vietnam.

“To keep pace with our energy demand, EMA will continue to engage all companies with credible and commercially viable proposals that can contribute to Singapore’s 2050 net zero ambitions,” the statement said.

“To ensure adequate supply to meet our future energy needs given growing demand, EMA will continue to grant conditional approval to companies with credible and commercially viable proposals.”

The AAPowerLink aims to provide 1.75 GW of renewable electricity to consumers in Singapore. Additionally, there is a plan to allocate 4 GW for future green industries in the NT.

SunCable envisions providing customers with a reliable 24/7 energy supply derived from solar and wind sources, supported by storage, to fulfil Singapore’s renewable energy needs day and night.

The energy will be generated in the Barkly region, which is known for having some of the best renewable resources in the world, enabling competitively priced and secure green energy.

So far, SunCable has invested more than $250 million across Australia, Singapore, and Indonesia to advance the project, the company said.

In August, AAPowerLink obtained its primary environmental approval from the Commonwealth Government, enabling the company to move forward with the next stage of development while collaborating closely with essential stakeholders both in Australia and internationally.

The company said the project is expected to generate thousands of jobs and bring about an estimated $20 billion in economic benefits to the Northern Territory throughout its construction and operational phases.

SunCable is currently working on securing essential authorisations and approvals from the NT Government and the Traditional Owners of the generation site. Additionally, the company is actively pursuing commercial agreements with green industrial partners in the Darwin region.

The company is expected to invest USD$2.5 billion directly in Indonesia throughout the duration of the project, which is projected to generate approximately 7,500 jobs in various sectors such as manufacturing, construction, marine, maintenance, and energy.