Singapore bears no financial impact from collapse of Sun Cable solar project: Gan Kim Yong

Singapore bears no financial impact from collapse of Sun Cable solar project: Gan Kim Yong

SINGAPORE: Singapore has not made any commitment to Sun Cable’s flagship solar energy project and therefore bears no financial impact from the company’s recent decision to enter into voluntary administration, said Trade and Industry Minister Gan Kim Yong on Monday (Feb 6).

He was responding to questions from Members of Parliament on whether Singapore made financial investments in the project, the implications of the collapse on Singapore’s renewable energy targets and what considerations are in place to assess the commercial risk and implementation of such projects.

In a written parliamentary reply, Mr Gan said there are abundant renewable energy resources in the region and beyond, and “considerable interest” from companies to bring electricity into Singapore.

The Energy Market Authority (EMA) received more than 20 proposals for its ongoing Requests for Proposals exercise, with Sun Cable’s proposal being one of them.

“As part of the tender process, EMA has been clarifying our technical requirements with Sun Cable. However, Singapore has not made any commitment, financial or otherwise, into the Sun Cable project,” Mr Gan said.

“Singapore therefore bears no financial impact from the recent actions taken by Sun Cable to enter into voluntary administration.”

Sun Cable’s flagship project aimed to harness solar energy in Australia and channel it to the Asia-Pacific region, including Singapore.

The renewable energy company had intended to begin construction on a 4,200km undersea cable in 2024. However, the firm announced on Jan 11 that the mega project has fallen short of funds, prompting it to go into voluntary administration.