In October 2023, during the Singapore-Malaysia Leaders’ Retreat, then-prime minister of Singapore Lee Hsien Loong and his counterpart Anwar Ibrahim outlined a willingness to collaborate on renewable energy.
Mr Lee said then that both countries are moving towards a low-carbon and sustainable future, and they are pursuing cross-border electricity trading, which will be a win-win partnership for both countries.
Among others, the Borneo state of Sarawak is looking to become a major exporter of green energy. According to reports, it aims to provide up to one gigawatt of renewable energy to Singapore by 2032. Its state minister has told local media previously that this export of electricity to the Republic will not affect the supply of its own domestic consumption.
Meanwhile, the Johor state government representative Mr Ling told CNA that collaboration in the field of renewable energy and green technology is specially mentioned in the memorandum of understanding between Malaysia and Singapore on the SEZ.
“The inclusion of Pengerang presents an opportunity to integrate renewable energy sources such as solar, biomass and potentially hydrogen into the industrial infrastructure, as it has advantage in terms of land and infrastructure availability as well as other resources,” he added.
NUS’ Assoc Prof Lee shared similar sentiments, highlighting how Pengerang’s “ample land and high solar insolation” makes it an ideal location for solar energy projects.
Solar insolation refers to the amount of solar radiation received on a surface over a period of time.
“Johor’s state government has shown interest in diversifying its energy portfolio, with plans to develop solar farms as part of the third phase of the PIPC development. This aligns with global trends towards sustainable energy solutions and could attract investments from companies focusing on renewable energy,” he added.
IMPROVING ACCESSIBILITY
While there is optimism about Pengerang’s potential to be an oil and gas hinterland for companies in Singapore, some experts warn that the accessibility to the area must be improved to facilitate the smooth flow of workers and cargo.
Via the Senai-Desaru highway, Pengerang is a 80-minute drive from Johor Bahru city centre and the Woodlands Causeway, considered a long journey from Singapore as compared to other industrial areas in the planned SEZ.
There are ferry services between Tanah Merah in Singapore and Desaru Coast in Pengerang, but the frequencies and services are catered for tourists.
