Australia greenlights US$13.5B project for solar power export to Singapore

SYDNEY, AUSTRALIA: On Wednesday (21 August), Australia announced the approval of a massive A$20 billion (US$13.5 billion) solar project, which aims to transmit energy from a vast solar farm in the country’s north to Singapore via a 4,300km undersea cable.

Environment Minister Tanya Plibersek said Australia-Asia power link (AAPowerLink) project, a flagship development project by the country’s renewable energy firm SunCable, is set to meet increasing renewable energy demands both domestically and internationally.

Plibersek highlighted that the expansive solar farm would generate enough power to supply three million homes and include panels, batteries, and eventually, a cable connecting Australia with Singapore.

“It will be the largest solar precinct in the world and heralds Australia as the world leader in green energy,” she said.

Pilbersek affirmed that the project’s approval comes with stringent conditions aimed at environmental protection, including avoiding the habitat of the greater bilby, a small marsupial with long floppy ears.

In a Facebook post, Plibersek expressed excitement over the approval of what is one of the largest renewable energy projects globally.

According to a press statement issued by SunCable, a final investment decision is anticipated in 2027, with electricity supply projected to commence in the early 2030s.

SunCable, backed by billionaire Mike Cannon-Brookes, described the approval as “a vote of confidence” in the project.

Cannon-Brookes, co-founder of tech firm Atlassian and now an environmental activist, had previously asserted the project’s viability and anticipated interest from external investors.

“SunCable will now focus its efforts on the next stage of planning to advance the project towards a Final Investment Decision targeted by 2027,” said SunCable Australia Managing Director Cameron Garnsworthy, although he did not detail the project’s financing plans.

The statement mentioned the firm will be investing further in communities in the Northern Territory, Singapore and Indonesia to progress the next phase.

SunCable is also in discussions with Singapore’s energy regulator regarding the subsea cable inter-connector component and with the Indonesian government about constructing the cable within its waters.

The company stated that over two stages of development, the AAPowerLink project aims to deliver up to 6GW of continuous green electricity to large-scale industrial customers in both Darwin and Singapore through the 4,300km subsea cable.

“The AAPowerLink can create multiple new export industries for Australia by enabling new green industrial development in the Northern Territory, and via subsea transmission of renewable electricity.”

The project had previously received clearance from the Northern Territory government and its environmental watchdog last month.

Spanning two stages of development, the project aims to deliver up to 6 gigawatts of green electricity to large-scale industrial customers in Darwin, the capital of Australia’s Northern Territory, and in Singapore.

This approval aligns with the centre-left government’s push for renewable energy, despite the opposition coalition’s proposal to replace coal-fired power with nuclear plants by 2050, a move currently restricted in Australia.