Sembcorp Utilities Ltd, PTSC’s partner in respect of joint investment, development, and operation of offshore wind farms in Vietnam was granted Conditional Approval by the Energy Market Authority of Singapore for importing clean energy from Vietnam.
On October 24, 2023, Sembcorp Utilities Ltd (SCU), PTSC’s partner in respect of joint investment, development, and operation of offshore wind farms in Vietnam to export clean energy to Singapore was granted Conditional Approval (CA) for importing clean energy from Vietnam by Energy Market Authority of Singapore (EMA) during the Singapore-International Energy Agency (IEA) Forum as part of Singapore International Energy Week 2023. Singapore’s Minister for Manpower and Second Minister for Trade and Industry (MTI) Dr. Tan See Leng, Vietnam’s Minister of Information and Communication Mr. Nguyen Manh Hung, the Ambassador of Vietnam to Singapore, the Chief Executive of EMA Mr. Ngiam Shih Chun, the President and CEO of Vietnam Oil and Gas Group, the Chairman and CEO of Sembcorp Industries, and representatives of the senior leadership from PTSC and SCU attended the presentation ceremony held on October 27.
This comes after the achievement of PTSC and SCU Consortium following the event that took place in Hanoi on August 2023, witnessed by Singaporean and Vietnamese Prime Ministers, when PTSC was awarded the Marine Survey Permit by Vietnam Ministry of Natural Resources and Environment (MONRE) to authorize wind, marine, and geological surveys for the offshore wind farm project in the waters of Ba Ria – Vung Tau province, and SCU was presented with the Letter of Intent (LOI) from EMA for the import of electricity from Vietnam to Singapore.
Based on the approval, PTSC and SCU will embark on conducting surveys, developing the project proposal, and submitting the relevant regulatory approvals to obtain an export permit from the Government of Vietnam as well as a conditional license from Singapore. With the attention and support from the Governments and Authorities of the two countries, the offshore wind farm project is expected to begin commercial operations from 2033, barring unforeseen circumstances. As a result, 1.2 GW of clean electricity generated is expected to be transmitted from Vietnam to Singapore via subsea cables. This will help fulfill the Republic’s target of importing 4GW of renewable energy by 2035 via electricity imports and achieve carbon neutrality by the middle of the 21st century.
The implementation of the project is a prime example of accelerating regional collaboration, which aims to improve ASEAN power grid connectivity and overall energy cooperation, as well as fostering the green-digital economic partnership between Vietnam and Singapore. The project is also a prime example of achieving energy cooperation, which is one of the five major pillars of Vietnam-Singapore collaboration as per the recently signed upgraded Connectivity Framework Agreement (CFA) during Singapore Prime Minister Lee Hsien Loong's state visit in August of 2023.
Tran Thi Huyen Trang