The Energy Market Authority (EMA) has granted its conditional approval to Sembcorp Industries U96 ’ wholly-owned subsidiary, Sembcorp Utilities to import 1.2GW of renewable electricity from Vietnam to Singapore.
The conditional approval was announced by Minister for Manpower and Second Minister for Trade and Industry of Singapore, Dr Tan See Leng, during the Asia Clean Energy Summit as part of Singapore International Energy Week 2023.
The conditional approval also follows the Letter of Intent (LOI) issued by EMA with regard to Sembcorp Utilities’ joint exploration of the development of offshore wind farms in southern Vietnam. The development will be done jointly with Petrovietnam Technical Services Corporation (PTSC) for the export of electricity to Singapore.
The offshore wind farms could commence operations as soon as 2033, subject to the receipt of relevant approvals and barring unforeseen circumstances. Sembcorp Utilities and PTSC will be embarking on the project proposal development and working towards obtaining the conditional licence and import permit from EMA, and export permit from the Government of Vietnam.
According to Sembcorp, the development of the renewable energy export project in Vietnam highlights the region’s cross-border efforts to strengthen the Asean grid and enhance energy security.
“As a long-time partner of Vietnam for over 25 years in energy and urban solutions, Sembcorp is committed to leverage its deep renewables capabilities to support the country’s clean energy transition,” says the group in its Oct 24.
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The award of the conditional approval is not expected to have any material impact on the earnings per share (EPS) and net tangible asset (NTA) per share of Sembcorp for the FY2023 ending Dec 31, 2023.
As at 2.51pm, shares in Sembcorp are trading 2 cents higher or 0.44% up at $4.60.
