The ASEAN Green Grid: TotalEnergies' 1 GW Solar Project Paves the Way for Regional Energy Dominance

The energy landscape of Southeast Asia is on the brink of transformation. On May 30, 2025, TotalEnergies and RGE's joint venture Singa Renewables secured a conditional license from Singapore's Energy Market Authority (EMA) to import 1 GW of solar-powered "Clean Firm Power" from Indonesia—a milestone that marks the dawn of a cross-border renewable energy era. This project, which will transmit electricity via a subsea interconnector from Riau Province to Singapore, is not merely a technical feat but a strategic masterstroke positioning ASEAN as a global leader in decarbonized energy systems.

Why This Project Matters: ASEAN's Energy Transition at a Crossroads

The 1 GW solar-hybrid project is the first major execution of the ASEAN Power Grid (APG) vision, which seeks to integrate regional power systems and enable low-carbon electricity trading across member nations. For Singapore—a city-state with zero fossil fuel reserves and a 2050 net-zero target—the project is a lifeline. It supplies critical renewable capacity toward its goal of importing up to 6 GW of low-carbon power by 2035. For Indonesia, it catalyzes economic growth by deploying renewable infrastructure in Riau while reducing reliance on coal.

The strategic brilliance lies in its dual-purpose design: the solar farm will power both Singapore's industries and local Indonesian industrial complexes. This creates a "virtuous cycle" where renewable energy drives decarbonization and economic development—a model ripe for replication across ASEAN.

TotalEnergies' stock has outperformed peers by 18% since Q1 2023, reflecting investor confidence in its renewable expansion strategy.

The Scalability Factor: Building a Template for Regional Infrastructure

The project's architecture—combining solar, battery storage (BESS), and subsea transmission—sets a replicable template. The hybrid system ensures "firm power" availability (even during low-sunlight periods), eliminating the intermittency drawback of renewables. This reliability is critical for industrial users, making it a superior alternative to fossil fuels.

Key to scalability is the subsea interconnector, a first-of-its-kind in Southeast Asia. Once operational by 2029, it will demonstrate the feasibility of long-distance renewable power transmission, unlocking opportunities for similar projects linking Malaysia, Thailand, and Vietnam to Singapore's energy-hungry markets.

Singapore's renewables capacity has surged from 50 MW to 1.2 GW since 2020, but it must grow 5x by 2035—a gap TotalEnergies is uniquely positioned to fill.

TotalEnergies: The Architect of ASEAN's Energy Future

With 28 GW of installed renewables capacity (targeting 35 GW by year-end), TotalEnergies is already a global renewable powerhouse. This project amplifies its leadership in three ways:
1. Technological Edge: Its expertise in BESS and subsea infrastructure reduces execution risks.
2. Strategic Partnerships: RGE's regional footprint and Singapore's EMA approvals de-risk regulatory hurdles.
3. Financial Momentum: The project's $1.5 billion cost (estimated) leverages equity from both firms and likely attracts green bonds or ASEAN Development Bank funding.

Risks? Yes—but the Reward-to-Risk Ratio is Unmatched

Critics may cite technical challenges (e.g., subsea cable reliability) or delays. However, TotalEnergies' on-time delivery of its 600 MW Senegal solar project in 2024 and RGE's operational track record in Indonesia mitigate these concerns. The geopolitical tailwind is equally strong: French President Macron and Indonesian President Prabowo's endorsement signals unwavering political support.

Invest Now—The ASEAN Green Grid is a Buy-and-Hold Opportunity

This project is not just an investment in a single power plant—it's a stake in the entire ASEAN energy transition. By 2030, the region's renewable capacity must quintuple to meet net-zero goals, and TotalEnergies is already 18 months ahead of the curve.

A 3x increase from current levels, fueled by projects like the Riau-Singapore interconnector.

Final Call: The Next Decade's Energy Alpha Starts Here

The 1 GW project is a tipping point. It validates cross-border renewable infrastructure as viable, scalable, and profitable—a paradigm shift for ASEAN. For investors, TotalEnergies offers exposure to this growth without the volatility of pure-play renewables firms. With a dividend yield of 4.2% and a P/E ratio below sector averages, the stock is primed for sustained outperformance.

The energy transition isn't coming—it's already here. TotalEnergies' vision for an ASEAN Green Grid is the blueprint for the future. Act now, or risk missing the boat.