Singapore and Indonesia sign MOUs for cross-border low-carbon electricity trade targeting 3.4 GW by 2035

Singapore and Indonesia have signed multiple memoranda of understanding to advance cross-border trade in low-carbon electricity. The agreements, announced after a leaders retreat, involve Indonesian state investment body Danantara and Singapore utilities Keppel Electric and Sembcorp. The goal is to deliver at least 3.4 GW of new renewable generation capacity by 2035, with electricity flowing across a new interconnector. Both governments are also developing a joint framework for cross-border renewable energy certificates to ensure proper tracking and accounting of the electrons traded. The MOUs mark a concrete step toward the ASEAN Power Grid vision. Indonesia's Danantara will lead the project development, while Singapore's utilities will act as offtakers. The deal is structured to create new generation capacity in Indonesia, not just redirect existing supply. Both sides are working on regulatory frameworks and investment conditions to meet the 2035 timeline. A cross-border REC framework aligned with international standards is also being developed ahead of the first power flows.