SINGAPORE: Singapore's Foreign Affairs Minister Vivian Balakrishnan on Tuesday (Sep 1) floated the idea of a Pacific power grid linked to Australia, saying it could strengthen energy security while allowing countries to benefit from economies of scale in electricity generation.
Speaking on the sidelines of the Pacific Islands Forum in Palau, Dr Balakrishnan drew parallels with Southeast Asia's efforts to develop an Asssociation of Southeast Asian Nations (ASEAN) Power Grid. Regional energy leaders say the initiative is increasingly viewed as an economic and energy security necessity.
“Imagine a day that you have a Pacific grid which is connected to Australia,” said Dr Balakrishnan.
“Even for us in Southeast Asia, we are trying to work on an ASEAN power grid. Because of the east-west spread of our regions, the total number of daylight hours would be more than 12 hours, and you would also get economies of scale, and you will get security - collective energy security - across this region.”
Unlike Singapore, which uses gas-powered turbines to generate electricity, Dr Balakrishnan noted that Pacific Island countries rely on diesel for electricity generation. This means energy costs in the Pacific are higher than in Singapore, where about 95 per cent of electricity is generated from imported natural gas, according to the Energy Market Authority.
But unlike Singapore, the “small and dispersed” nature of Pacific Island states also means gas is a less viable solution, he said. As such, an interconnected grid could allow electricity to be generated cost-effectively and shared across a wider area.
“The other big difference between you and Singapore is that you are 'BOS' - big ocean states - and therefore you are not short of sunshine or places to generate renewable energy,” Dr Balakrishnan said.
He described Australia as a renewable energy “superpower” and a potential partner for such a grid.
Dr Balakrishnan also brought up how recent disruptions to global energy supplies are a reminder that the energy transition is not only about climate change, but about energy security, economic resilience, and giving small states “strategic autonomy” and “greater control over their future”.
“This is a collective existential challenge for all of us,” he said, adding that the technology needed for the transition already largely exists and the challenge lies in “getting the economics and politics right”.