Sembcorp, Sarawak Energy, and Prysmian: Powering Singapore's Green Energy Future

In a landmark move that underscores the global shift towards sustainable energy, Sembcorp Industries, Sarawak Energy, and Prysmian have joined forces to supply Singapore with green energy. This strategic partnership aims to enhance energy security, reduce carbon emissions, and drive socio-economic development in the region. The collaboration leverages the strengths of each partner to create a robust and sustainable energy ecosystem that aligns with global decarbonization goals.



Renewable Energy Leadership

Sarawak Energy, Malaysia's largest renewable energy developer and provider, has been at the forefront of hydropower development. With a generation mix primarily composed of renewable hydropower, complemented by indigenous coal and gas generation, Sarawak Energy ensures a reliable and continuous power supply. The company's hydroelectric plants, including Batang Ai, Bakun, and Murum, provide clean, green, modern, and affordable energy, supporting domestic, commercial, and industrial customers. These projects have not only driven socio-economic growth but also improved infrastructure, healthcare, education, and employment opportunities in local communities.

Sembcorp Industries, a leading Asian renewable energy player, has a geographically diversified portfolio comprising wind, solar, hydro, and energy storage across key markets in Southeast Asia, China, India, the UK, and the Middle East. With a gross renewable energy capacity of 14.4GW, Sembcorp aims to grow its gross installed renewables capacity to 25GW by 2028. The company's strategic plan includes leveraging gas as a transition fuel to fund renewables growth and investing in capabilities such as hydrogen and its derivatives, which are essential for a low-carbon energy future.

Infrastructure and Technology

Prysmian, a global leader in the energy and telecom cable systems industry, plays a critical role in this partnership by providing the necessary infrastructure for the transmission and distribution of renewable energy. The RM2.7 billion 500kV backbone, which is currently energized at 275kV, is one of the most important state Grid infrastructures in Sarawak. This massive state infrastructure stretches over 500km from Similajau to Kuching Division and has doubled the network’s capacity, enhancing reliability, particularly in the more densely populated southern region. Additionally, the Northern Grid transmission lines linking Limbang and Lawas to Simalajau, expected to be completed in mid-2024, further strengthen the reliability of Sarawak’s overall power system by enhancing transmission security and capacity for current and future load growth.

Decarbonization and Sustainability

The partnership between Sembcorp, Sarawak Energy, and Prysmian significantly contributes to decarbonization efforts in Southeast Asia and plays a crucial role in achieving regional and global sustainability targets. By providing predominantly renewable energy at the lowest tariffs in Malaysia and among the most competitive and lowest in Southeast Asia, these companies support regional energy security, sustainability, and affordability. The collaboration aligns with the United Nations Sustainable Development Goal No. 7 ‘Affordable and Clean Energy for All’ ahead of its target of 2030.

Sembcorp Industries has achieved its 2025 emissions intensity target of 0.40 tCO2e/MWh (Scope 1 and 2) ahead of time. By 2028, Sembcorp aims to halve its emissions intensity to 0.15 tCO2e/MWh from 2023 forecasted levels of 0.30 tCO2e/MWh. The company is committed to reducing absolute emissions to 2.7 million tCO2e (Scope 1 and 2) by 2030 and achieving net-zero emissions by 2050. This commitment aligns with global sustainability targets and supports the transition to a low-carbon economy.

Challenges and Risks

While the partnership between Sembcorp, Sarawak Energy, and Prysmian holds immense potential, it also faces several challenges and risks. Technological and operational risks, regulatory and permitting issues, market and export fluctuations, financial constraints, and environmental and social impacts could impact the project's timeline and financial viability. It is crucial for the partners to address these challenges proactively to ensure the successful completion of the project.

Conclusion

The collaboration between Sembcorp, Sarawak Energy, and Prysmian is a significant step towards achieving Singapore's green energy goals. By leveraging the strengths of each partner, the collaboration aims to enhance energy security, reduce carbon emissions, and drive socio-economic development in the region. The partnership aligns with global decarbonization efforts and plays a crucial role in achieving regional and global sustainability targets. As the world continues to transition towards a low-carbon economy, such collaborations will be instrumental in creating a sustainable and resilient energy future.