SunCable, the owner of the ambitious Australia-Asia PowerLink project, announced on Tuesday that it has received conditional approval from Singapore's Energy Market Authority for its multi-billion dollar initiative to transport solar-generated electricity 4,300 km (2,672 miles) from Australia to Singapore.
The approval follows a comprehensive assessment to evaluate the technical and commercial viability of the project, which aims to harness 6 gigawatts (GW) of electricity from a large solar farm in Northern Australia. Approximately one-third of this generated electricity is intended for export to Singapore via an undersea cable.
The project is anticipated to create significant economic value, with SunCable estimating A$20 billion (USD 13 billion) in benefits for Northern Australia. Despite its promise, the project has faced scrutiny regarding its feasibility. Recently, Mike Cannon-Brookes, co-founder of Atlassian, took control of SunCable amid a dispute with fellow owner Andrew Forrest, founder of Fortescue Metals, over the project's prospects.
Mitesh Patel, Interim CEO of SunCable International, expressed optimism, stating, “Today's announcement is a vote of confidence in the commercial and technical viability of our project.”
With the approval in hand, SunCable can advance to the next phase of development, which includes collaborating with Indonesia, through whose waters the proposed cable will run. The company plans to invest $2.5 billion in Indonesia throughout the project's lifespan. To date, SunCable has committed A$270 million to project development across Australia, Singapore, and Indonesia, with a final investment decision expected in 2027.
