Keppel Energy, the wholly-owned subsidiary of Keppel Infrastructure, has signed exclusive and binding agreements with Royal Group Power Company Ltd (RGP) and PSG Corporation Public Company Limited (PSGC) to explore renewable energy opportunities and cross-border interconnections with Cambodia and Laos.
A binding and exclusive collaboration agreement was signed with RGP to explore the development and operations of selected renewable energy projects in Cambodia on Oct 27, while an exclusive and binding memorandum of understanding (MOU) was signed with PSGC to jointly explore opportunities in renewable energy import from Laos into Singapore on Oct 25.
“The agreements are an important step to accelerate the development of renewable energy resources so as to seize opportunities arising from the Asean Power Grid’s vision of multilateral electricity trading beyond international borders, including the potential importation of low-carbon electricity into Singapore,” says Cindy Lim, CEO of Keppel Infrastructure.
“Through this, not only can Asean transit towards a greener energy mix more rapidly, but it will also bolster the energy resilience of Singapore and the region. Keppel Infrastructure is pleased to grow its partnership with Cambodia and Laos and looks forward to working closely with Royal Group Power and PSG Corporation to provide scalable sustainable energy solutions and related infrastructure, to cater to the region’s growing demand,” she adds.
Further to its statement, Keppel Infrastructure says that the two agreements will support the development of regional power grids as one of “Four Switches” that Singapore will tap on in its transition to a more sustainable and resilient energy future. The four switches are natural gas, solar, regional power grids and emerging low-carbon alternatives.
The agreements follow an exclusive collaboration memorandum of understanding (MOU) that Keppel Infrastructure signed in January with Impact Electrons Siam Co., Ltd. (IES) and Envision Group to work on the development and supply of low-carbon electricity from wind energy projects in Laos, as well as storage and intermittency management solutions.
Lim continues: “In line with Keppel’s Vision 2030, we will continue to seek opportunities brought about by energy transition, including renewable energy, in partnership with like-minded partners internationally, as we work together towards a Net Zero future. We would also like to thank the governments of Cambodia, Laos and Singapore for their support so that we may work towards developing the immense potential of a regional power grid.”
“Our exclusive collaboration agreement with Keppel to develop and export up to 1,000 MW of power from the Kingdom of Cambodia to the Republic of Singapore, along with developing the power transmission infrastructure to handle power export from Laos, represents ground-breaking cooperation between our two countries and our two companies,” says Neak Okhna Kith Meng, chairman of RGP. “It is a milestone for Asean cooperation. Our business- to- business cooperation will contribute greatly to the implementation of the broader Asean Power Grid by increasing Electricity Connectivity within Asean by implementing key elements of the joint statement issued by the Ministry of Mines and Energy of Cambodia and the Ministry of Trade and Industry of Singapore during the 40th Asean Ministers on Energy Meeting on Sept 16.”
David Van Dau, CEO of PSGC adds: “The vision of a unified Asean grid is one we all share, and with this agreement we are one step closer to achieving this vision. We trust that our collaboration with Keppel Infrastructure will bring about stronger economic ties and closer relations between Lao PDR and Singapore. PSGC is honoured to play a small part in the development of green renewable energy in the Lao PDR for export to its neighbouring countries and to accelerate Lao PDR towards its ultimate goal of providing 100% clean and reliable energy for future generations. We are grateful to the governments of Singapore and Lao PDR for this exciting opportunity and look forward to positive developments in the near future.”
Shares in Keppel Corp closed five cents higher or 0.76% up at $6.65 on Oct 27.