Vanda RE Pte Ltd., a Singapore-based company, is currently holding discussions with Singaporean firms regarding the future purchase of electricity from its solar and storage project in Indonesia’s Riau Islands. The project targets an installed capacity of 2 gigawatt-peak (GWp) of solar panels and 4.4 gigawatt-hours (GWh) of battery storage. According to Gurīn Energy Pte Ltd., a development partner, approximately 300 megawatts (MW) of alternating current electricity could be exported on a stable basis once the facility is operational.
A strategic project between Singapore and Indonesia
Estimated at $3 billion, the “Vanda Solar & Battery Project” is co-developed by Gurīn Energy, headquartered in Singapore, and Gentari International Renewables Pte Ltd., a Malaysian subsidiary of Petronas. The initiative is part of a bilateral plan to establish a low-carbon electricity trading corridor between Singapore and Indonesia. Singapore’s Energy Market Authority, the national electricity regulator, has granted conditional import licenses to facilitate the entry of 2 GW of regional power.
The project developers have not disclosed the identities of potential buyers but indicated that market interest is significant. Commissioning is expected by 2028, with output equivalent to powering about 584,000 Housing Development Board (HDB) flats in Singapore annually. At present, the teams are finalizing permits and working with key suppliers and contractors to advance into a more developed stage.
Industrial implications and associated investments
Beyond electricity exports to Singapore, the project is viewed as a lever to stimulate local production in Indonesia. The planned volumes are creating increased demand for locally manufactured solar panels and batteries, thereby attracting international players in the technology sector. According to Gurīn Energy, this could encourage the establishment of foreign manufacturers in Indonesia’s supply chain.
Indonesia has set an ambitious target of achieving a 74% renewable share in its electricity mix by 2034, under its national Electricity Supply Business Plan. In 2023, the country generated 27.89 terawatt-hours (TWh) of low-carbon electricity, out of a total production of 329.58 TWh, according to data from Our World in Data. Between 2013 and 2023, Indonesia also attracted $3.54 billion in cross-border energy investment, mainly from Japan, China, and South Korea, according to Zero Carbon Analytics.
Engineering and battery supply
The project’s design and engineering management have been assigned to Black & Veatch Corp., a U.S.-based company specializing in energy infrastructure. Its scope includes the design and procurement of photovoltaic panels, storage systems, inverters, substations, transmission lines, and other critical components.
Battery supply will be partly provided by Contemporary Amperex Technology Co. Ltd. (CATL), selected to deliver up to 2.2 GWh of its EnerX BESS system. Black & Veatch representatives stated that the technical strategy focuses on early identification and mitigation of project risks.
