Singapore and Indonesia plan to develop a renewable energy industry in Batam that will produce equipment and build power plants to supply electricity into Southeast Asia's biggest economy and for export.
Singapore and Indonesia will facilitate the development of solar farms and battery energy storage system (BESS) to supply renewable energy, and when viable, hydrogen and ammonia, Indonesia's coordinating ministry for maritime affairs and investments, and Singapore's trade and industry ministry said in a joint statement.
The so-called Green Corridor project in the largest city in
the province of Riau Islands is estimated to attract $50 billion
of foreign direct investment and create "tens of thousands of
jobs", Sustainable Energy Association of Singapore said in a
statement.
SEAS members and multiple partners signed on Thursday a
memorandum of understanding (MOU) to work on the project, one of
nine such agreements signed by businesses in Singapore and
Indonesia at the bilateral meeting.
Singapore Prime Minister Lee Hsien Loong and visiting
Indonesian President Joko Widodo witnessed the signing of six
pacts between their governments, including one on developing
renewable energy.
Both countries will also work together to facilitate
commercial arrangements and the development of frameworks and
transmission infrastructure to allow cross-border electricity
trading between Indonesia and Singapore, which generate capital
inflows into Indonesia, the ministries said.
"This Green Corridor project is a win-win between Singapore
and Indonesia and will open up many more renewable energy
projects, where both countries will benefit tremendously," said
Edwin Khew, chairman of the SEAS.
Members of SEAS and multiple partners working to develop the
Green Corridor project include carbon exchanges, renewable power
producers and infrastructure companies such as EDPR Sunseap,
Vanda RE, Keppel, Huawei, as well as battery makers VFlow Tech
Batteries and Narada Batteries.
(Reporting by Xinghui Kok and Matthew Chye
Editing by Bernadette Baum, Martin Petty)
