KUALA LUMPUR (Oct 30): Malaysia and Singapore have affirmed commitment to collaborating on renewable energy co-development and cross-border electricity trading, with talk of a second interconnector acknowledged by leaders of the two countries.

The affirmation came as both countries “work towards a low carbon future”, Prime Minister Datuk Seri Anwar Ibrahim and Singapore Prime Minister Lee Hsien Loong said in a joint statement at the 10th Singapore-Malaysia Leaders’ Retreat in Singapore.

The two leaders, the statement said, “noted” the ongoing discussions for Singapore to import renewable energy from Sarawak, adding that the federal government of Malaysia “will give its assistance in accelerating the process”.

They also acknowledged the recently signed memorandum of understanding between Singapore state-owned electricity distribution outfit Singapore Power Ltd and Malaysia’s utility group Tenaga Nasional Bhd “to explore the technical feasibility of a second interconnector”.

It cited the Plentong-Woodlands Interconnector, which had been upgraded in October 2022 to facilitate bidirectional electricity flows of approximately 1,000 MW between the two countries.

“These efforts will further enhance energy security and enable greater renewable energy integration,” the statement said.  

“Both leaders also took the opportunity to reiterate their countries’ shared goal of strengthening regional interconnectivity through multilateral cross-border electricity trading initiatives, such as the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project and the Asean Power Grid,” it added.

It is noted that Malaysia this year reversed its policy to ban exports of renewable energy to Singapore, which itself is looking to import up to 1.2 gigawatt (GW) of electricity (excluding coal-fired) by end-2027, and up to 4GW by 2035, with negotiations done with neighbouring Indonesia and Laos for the supply.

The city state has launched a request for proposal, which closes at end-2023, to appoint entities to conduct the imports, while the Malaysian government has said it is still working towards finalising the detailed mechanism to tap into the opportunity to export its renewable energy there.

Sarawak, in turn, has expressed interest to export up to 1GW of its hydro-generated power to Singapore. It was reported that Singapore could be building a 700km undersea transmission line from Sarawak to the country, Sarawak Energy Bhd said in September.