Cambodia Investment Review
Cambodia’s Royal Group Power (RGP) has signed a long-term Power Purchase and Export Agreement (PPEA) with Keppel Energy to supply and export utility-scale low carbon electricity into Singapore. The PPEA, which was signed on 15 March 2023, was witnessed by the Singaporean minister for manpower and second minister for trade and industry, Tan See Leng, and the Cambodian minister for mines and energy, Suy Sem, among other officials.
Under the agreement, RGP will supply and export low carbon electricity to Keppel Energy, which will import the electricity into Singapore. The two companies have previously signed an exclusive and binding agreement to explore the joint development and operations of selected renewable energy projects in Cambodia. These projects will have an installed capacity of about 2,500MW and will be able to export up to 1,000MW to Singapore via submarine high-voltage transmission.
Accelerating development of renewable energy
Speaking at the signing ceremony, Tan See Leng praised the working groups of the two countries for their tireless effort to work closely until the official signing of the PPEA. He underscored the importance of the agreement in accelerating the development of renewable energy resources and seizing opportunities arising from the ASEAN Power Grid of multilateral power trading beyond its border and imports low carbon electricity to Singapore.
Read more: Royal Group and Keppel Energy pursue joint development of renewable energy and cross-border transmission from Cambodia to Singapore
Suy Sem considered the signing of the agreement to be historic for Cambodia, adding that the PPEA is part of the framework of the Memorandum of Understanding on Cambodia-Singapore Energy Cooperation. The project is fully supported by the governments of the two nations in accordance with ASEAN’s strategic project to support energy trade and energy integration between ASEAN member states, including Cambodia and Singapore, and in line with the Master Plan on ASEAN Connectivity (MPAC) 2025 objectives.
Kith Meng, the chairman of RGP, said the agreement represents an important step in moving away from carbon-dependent electricity and contributing to the sustained economic growth of their respective home countries. He added that the success of the project will not only benefit their two companies and two countries but also foster integration in the power sector of the ASEAN Community. The implementation of the PPEA will also help to facilitate national, ASEAN Community, and global efforts to meet long-term, net-zero emission targets.
Full feasibility study started
Cindy Lim, CEO of Keppel Energy, expressed her gratitude to the governments of Singapore and Cambodia for their support of the project. She added that the completion of the project will catalyse the regional power grid and accelerate renewable energy growth in ASEAN while bolstering the region’s energy resilience.
As part of the agreement, the Ministry of Mines and Energy agreed to allow the two companies to conduct a full feasibility study and collect marine data on actual locations in Cambodia’s geographical waters and exclusive economic zone. The survey is set to start in March 2023 and end by the end of the year.