Singapore’s Sembcorp Secures Landmark Approval to Import 1GW Renewable Energy from Sarawak—Paving the Way for Regional Power Integration

Key Points for Investors

• Conditional Approval Granted: Sembcorp Utilities Pte Ltd, a subsidiary of Sembcorp Industries, in partnership with Sarawak Energy Berhad (SEB), has received a pivotal Conditional Approval from the Energy Market Authority (EMA) of Singapore to import approximately 1GW of renewable energy from Sarawak to Singapore. This marks Singapore’s first large-scale 24/7 renewable power import initiative.
• Major Step Toward Singapore’s 6GW 2035 Target: This project, along with a previous conditional approval to import 1.2GW from Vietnam, brings Sembcorp’s anticipated import portfolio to 2.2GW—over one-third of Singapore’s 6GW renewable import target by 2035.
• Project Details: The electricity will be sourced primarily from hydropower in Sarawak, with certification under the Hydropower Sustainability Standard, and transmitted via >700km subsea cables. SP PowerInterconnect will act as a technical partner, and Prysmian, a global leader in high-voltage cable systems, has been chosen as a preferred supplier for the subsea interconnector.
• Regional Impact: This initiative not only supports Singapore’s decarbonization but also strengthens regional energy cooperation, grid resilience, and is seen as a key building block for the ASEAN Power Grid.
• Timeline: Operations are expected to begin around 2035.
• Financial Impact: Sembcorp states that the conditional approval is not expected to have a material impact on earnings per share or net tangible asset per share for the financial year ending December 31, 2025.

Detailed Analysis and Implications

Sembcorp’s new milestone in securing conditional approval for the large-scale import of renewable energy from Sarawak to Singapore marks a significant advancement in the nation’s energy transition strategy. The initiative is the first of its kind to provide “24/7” renewable baseload electricity to Singapore, potentially transforming the energy landscape and reinforcing the city-state’s commitment to sustainability and regional integration.

The project leverages Sarawak’s hydropower resources, which are positioned to receive sustainability certification by the Hydropower Sustainability Standard—a global benchmark for responsible hydropower projects. Electricity will be delivered via a state-of-the-art, more than 700km subsea cable, with design and installation spearheaded by Prysmian, a leader in high-voltage submarine and underground cable systems.

SP PowerInterconnect’s role as a technical partner further underlines the project’s complexity and importance for Singapore’s grid. The development will enhance Singapore’s energy resilience, contribute to decarbonization, and serve as a key component of the broader ASEAN Power Grid, fostering greater cross-border electricity trading and regional cooperation.

The ceremonial signing was witnessed by high-level representatives from both countries, including Singapore’s Deputy Prime Minister and Malaysia’s Deputy Prime Minister, underscoring the political will and cross-border commitment to the project.

This is Sembcorp’s second major conditional approval for cross-border renewable energy imports, following an earlier deal with Vietnam. The combined 2.2GW of anticipated imports is a substantial stride toward Singapore’s goal to import 6GW of low-carbon electricity by 2035.

However, it is important to note that Sembcorp has indicated the current approval will not have a material financial impact for the 2025 financial year. This suggests that the bulk of the financial and earnings effects will be realized in later years, as the project approaches operational status around 2035. Nonetheless, the long-term strategic value—both in terms of revenue diversification and climate leadership—could be significant as Singapore cements its position as a regional clean energy hub.

Sembcorp now boasts a balanced energy portfolio of 27.4GW, with 19.3GW in gross renewable energy capacity across 11 countries. Its urban development footprint spans 14,800 hectares and has attracted nearly US\$58 billion in investment capital, reinforcing its stature as a major player in sustainable infrastructure and energy transition.

Potential Impact on Shareholders

• Strategic Positioning: This approval consolidates Sembcorp’s leadership in the renewable energy transition, potentially driving long-term value creation and international growth.
• Long-term Value: While immediate financial impact is minimal, the multi-gigawatt import pipeline could unlock significant medium- to long-term growth and earnings potential as projects come online.
• Market Sentiment: The news highlights Sembcorp’s execution capability and strengthens investor confidence in its ability to win and deliver large-scale, cross-border energy projects.
• Regulatory and Regional Support: High-level government support and regional cooperation reduce execution risk and enhance project viability.

Contacts and Further Information

For analysts and media, key contacts at Sembcorp include Ms. Ling Xin Jin, Head of Group Corporate Communications and Investor Relations, and Ms. Archanaa Nivruthaa Raja, Senior Manager of Group Corporate Communications and Investor Relations.

About Sembcorp Industries: Sembcorp Industries is a leading Singapore-based energy and urban solutions provider, listed on SGX and a constituent of major indices including the FTSE Russell and Straits Times Index, as well as leading ESG indices.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors are advised to conduct their own due diligence and consult with a licensed financial adviser before making any investment decisions. The author and publisher bear no responsibility for any losses arising from reliance on this information.

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