Singapore-Indonesia green power trade advances as carbon prices guide pricing

Singapore and Indonesia are nearing a green power trade agreement, with pricing terms still under negotiation. (Photo: iStock)

Singapore and Indonesia are moving closer to an agreement on cross-border renewable electricity trade, but they have yet to settle on a price that is attractive to both sides. 

Singapore’s Minister of State for Trade and Industry Gan Siow Huang said carbon credit prices are being used as a benchmark for what companies may be willing to pay, while Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia has said the current proposals do not yet provide a mutually beneficial outcome.

Unlock the full article to explore three key takeaways:

1. Carbon credit prices are shaping how much Singaporean buyers may pay for imported green power.

2. Indonesia’s new export rules have created uncertainty for private developers with conditional Singapore licenses.

3. A 3.4 GW export target could require 11 GWp of solar and 21 GWh of storage, generating up to USD 6 billion annually for Indonesia.