SINGAPORE Trends and Developments Contributed by: Priyank Srivastava, Shelton M. Vaughan, Ramiro Rodriguez and Colette Tan, Duane Morris & Selvam LLP
Interconnections (SGEI) was established to invest in, develop, own and operate interconnectors to import electricity. SGEI will also work closely with regional partners to develop renewable energy projects and promote best practices within the power sector. The establishment of SGEI aims to counteract the reluc- tance among financial institutions to fund grid infra- structure for the transport of electricity arising from perceived high risks and large upfront costs. This could help to increase investor confidence, attract new funding and serve as a catalyst for future M&A deals related to the import of clean energy. The transition to renewable energy has also spurred strategic alliances between countries. For example, the Laos PDR-Thailand-Malaysia-Singapore Power Integration Project was enhanced in 2024 to double the capacity of hydropower-sourced electricity traded between the countries to 200 megawatts (MW). In May 2025, it was announced that state-owned companies across Malaysia, Vietnam and Singapore would col- laborate to explore the export of renewable energy from Vietnam to Malaysia and through Malaysia to Singapore. Apart from collaborations at a national level, the energy transition has also directed buyers of energy, including data centre operators, to source renewable energy through the purchase of renewable energy or acquisition of renewable energy infrastructure. Nota- bly, in April 2024, subsidiaries of US-based data cen- tre firm Equinix inked two long-term power purchase deals with a wholly owned subsidiary of Sembcorp Industries, a leading renewables player in Asia. In a tie-in with policy moves, Sembcorp will be off-taking from the Singapore government’s planned installation of solar panels across approximately 1,400 housing blocks and government sites to supply Equinix with up to 75 MW-peak of renewable energy and 30 MW from its power generation portfolio. This highlights the importance of policy support in strengthening the country’s energy and infrastructure sector. As an example of the acquisition of infrastructure, Semb- corp Industries announced in October 2025 that it had agreed to acquire ReNew Sun Bright Private Limited, which owns and operates a 300 MW solar power asset located in Rajasthan, India.
To support Singapore’s net zero target, the EMA is also gradually tightening emissions standards. In October 2023, the EMA established a two-tier emis- sions standard for new and repowered fossil fuel-fired generation units. These standards required regularly used generation units to be around 10% more carbon- efficient than then-existing generation units in Singa- pore. The EMA is proposing an Emissions Standard Code to enforce the emissions standards and rules regarding power generators’ emissions monitoring, reporting, validation and hydrogen readiness. For example, under the proposed Emissions Standard Code, certain power generators will be required to demonstrate that their generation unit has the techni- cal capability to be at least 30% hydrogen-ready by volume. Renewable energy goals have been a major demand driver across the wide range of asset acquisitions and portfolio expansions that we have advised on, and we expect this trend to continue in step with the broader energy transition. This has been, and will continue to be, bolstered by a growing use of green financing which signals to investors the importance of environmental performance in asset valuation and risk assessment. Increasing Adoption of Artificial Intelligence and Technology The increasing adoption of artificial intelligence (AI) and technology is accelerating investment and M&A activity in data centres and digital infrastructure both domestically and internationally, as Singapore moves to build and secure AI-ready capacity. Major play- ers like Singtel, a Singaporean telecommunications conglomerate, and Keppel, a global asset manager and operator, have entered into acquisitions for data centres abroad and in Singapore, whether singly or together with major players in other jurisdictions. Signalling a clear policy direction towards sustain- able digital infrastructure, in May 2024, Singapore announced its plans to expand data centre capacity by more than one-third, with at least 300 MW of data centre capacity to be added in the next few years and another 200 MW to be allocated only for opera- tors using renewable energy. To encourage the use of renewable energy, operators can tap into incentives
357 CHAMBERS.COM
Powered by FlippingBook