Australia has given the green light to what is said as the world’s largest solar precinct, a massive solar and battery farm that plans to export energy to Singapore. The project is a $19 billion initiative led by SunCable, a company co-founded by Mike Cannon-Brookes who is known for his strong advocacy for renewable energy. It is situated in Australia’s Northern Territory covering a vast area of 12,000 hectares.
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The solar hub will generate 6 gigawatts (GW) of power, of which 4 GW will be used domestically and the remaining 2 GW will be exported to Singapore via an undersea cable.
The undersea cable spanning over 4,300 kilometers is a key component of the project. The project aims to supply about 15% of Singapore’s total energy needs, reducing the city-state’s reliance on fossil fuels.
The solar farm will include battery systems capable of storing up to 40 gigawatt-hours (GWh) of energy. This storage capacity is crucial for a stable energy supply for the exported power.
The batteries will allow for the storage of surplus energy during peak production periods, which can then be dispatched when demand is high or when solar generation is lower.
The project is expected to create thousands of jobs during the construction phase. Environment Minister Tanya Plibersek highlighted that the project would position Australia as a world leader in green energy contributing to the global fight against climate change.
By supplying clean energy to both Australia and Singapore, the project will help reduce carbon emissions.
The project still faces several hurdles before becoming fully operational. Among these is securing approvals from Singapore’s energy market authority and the Indonesian government, as the undersea cable will pass through Indonesian waters.
The project also needs to engage with Australian Indigenous communities to ensure that their land rights and interests are respected throughout the development process.
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The project is scheduled to begin energy production by 2030 with the final investment decision targeted for 2027.
Once operational, the SunCable project is expected to set a new benchmark for large-scale renewable energy projects worldwide.
Australia is already recognized as one of the world’s leading adopters of household solar panels, but the country has been slower in large-scale renewable energy projects.
Renewables account for 32% of Australia’s electricity generation with coal still dominating at 47%.
The construction and operation of the solar farm are expected to create around 14,300 jobs. The project positions Australia as a renewable energy superpower.
By exporting solar energy to Singapore, Australia demonstrates the potential of international renewable energy trade, which could make way for similar projects in the future.
The project is planned in two phases. Initially, it will deliver up to 4GW of energy to the Northern Territory and Singapore.
A final investment decision is expected by 2027 with energy exports to Singapore anticipated to commence in the early 2030s.
The project’s long-term goal is to integrate additional renewable sources including wind energy, although this would require separate approvals.
The approval comes at a time when the Australian government is accelerating its efforts in renewable energy. The opposition coalition has proposed constructing nuclear power plants to replace coal-fired power by 2050.
Nuclear energy remains an issue in Australia, where it is currently banned. The ruling Labor Party under Prime Minister Anthony Albanese advocates for a transition towards renewable energy, dismissing nuclear energy as an expensive and impractical option.
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